Trading NR7 setup
- Thread starter AW10
- Start date
- Tags narrow range nr 7 nr4 option trade
- Status
Just to extend NR4-2 as per my understanding.. is having NR4 day triggered on 2 days.. one after another.
Logically it is = NR5 .. For ex if we have range distribution is like 119,120,121 and 118 then we got NR4 here. If on next day we get range of 116 then we have NR4 (120,121,118 and 116 ) if we look back 4 days. If we look back 5 days (119,120,121,118 and 116) then we will get NR5.
We could have also got NR5 if with following range sequence (119,95,121,100 and 90), but this is not NR4-2 setup. We could infact get NR7 level of contraction for 1 day and immediate expansion next day.
As per my understanding, NR4 indicates that mkt has been under contraction for 2 days. That means longer the contraction, stronger the expansion.
In comparision to this, NR5 / NR6 / NR7 means 1 days of extreme contraction.
To understand the difference between NR4 / NR4-2 and NR5, you got to look at the time aspect of market behaviour.
Sunil, any thought /comment on my understanding of this variation.
Hope , I have not confused the readers.
Happy Trading
Logically it is = NR5 .. For ex if we have range distribution is like 119,120,121 and 118 then we got NR4 here. If on next day we get range of 116 then we have NR4 (120,121,118 and 116 ) if we look back 4 days. If we look back 5 days (119,120,121,118 and 116) then we will get NR5.
We could have also got NR5 if with following range sequence (119,95,121,100 and 90), but this is not NR4-2 setup. We could infact get NR7 level of contraction for 1 day and immediate expansion next day.
As per my understanding, NR4 indicates that mkt has been under contraction for 2 days. That means longer the contraction, stronger the expansion.
In comparision to this, NR5 / NR6 / NR7 means 1 days of extreme contraction.
To understand the difference between NR4 / NR4-2 and NR5, you got to look at the time aspect of market behaviour.
Sunil, any thought /comment on my understanding of this variation.
Hope , I have not confused the readers.
Happy Trading
This is exactly what I wanted to illustrate to you, AW10...
I don't prefer NR4 or NR5 alone...
I am looking for continuous contraction. That's why I make an exception and incorporate the SECOND instance of NR4-2 (ie NR4-2) in such setup.
After that, it's NR7.
IB with any of them is just like an icing on the cake.
Mini-flow guys will vouch for this, as one can expect a good trendy day on the following day.
I don't prefer NR4 or NR5 alone...
I am looking for continuous contraction. That's why I make an exception and incorporate the SECOND instance of NR4-2 (ie NR4-2) in such setup.
After that, it's NR7.
IB with any of them is just like an icing on the cake.
Mini-flow guys will vouch for this, as one can expect a good trendy day on the following day.
Agree with Sunil that Inside Day brings is more strength to this setup.
That setup is tagged as IDNR setup.
So we have following variations of this setup
- NR4/ NR5/ NR6/ NR7 / NR8 etc (though finding NR8 days really rare.) Smaller the timeframe, bigger the number we can see. e.g Getting NR7 on Monthly chart is dream.
- NR4 - 2, NR5-2 etc (long duration of contraction)
- IDNR4/ IDNR 5/ IDNR6/ IDNR7 etc [contraction not just in range (i.e. mood of participants during market hour) but also in time]
- for you info, I have also read about 2-day NR4 (rather than taking daily high-low range, (a) take H-L range of 2 days i.e. today range will be (Max of (high today, high yesterday) Min of (Low today, low yesterday). (b) Calculate for every day (c) and then look back over last n entries to find the narrowest range of any 2 days.
Extending this concept is limited to individuals creativity. As long as there is reasoning behind it, IMO, it should work.
I am in the process of merging NR concept with multi-timeframe concept and test the setup. Hopefully, will be able to share my findings once I am done with that.
Happy Trading
That setup is tagged as IDNR setup.
So we have following variations of this setup
- NR4/ NR5/ NR6/ NR7 / NR8 etc (though finding NR8 days really rare.) Smaller the timeframe, bigger the number we can see. e.g Getting NR7 on Monthly chart is dream.
- NR4 - 2, NR5-2 etc (long duration of contraction)
- IDNR4/ IDNR 5/ IDNR6/ IDNR7 etc [contraction not just in range (i.e. mood of participants during market hour) but also in time]
- for you info, I have also read about 2-day NR4 (rather than taking daily high-low range, (a) take H-L range of 2 days i.e. today range will be (Max of (high today, high yesterday) Min of (Low today, low yesterday). (b) Calculate for every day (c) and then look back over last n entries to find the narrowest range of any 2 days.
Extending this concept is limited to individuals creativity. As long as there is reasoning behind it, IMO, it should work.
I am in the process of merging NR concept with multi-timeframe concept and test the setup. Hopefully, will be able to share my findings once I am done with that.
Happy Trading
the above discussion which is going on, based on that Today we got some stock in nifty fifty with 2NR7. They are HEROHONDA, RELIANCE CAPITAL, SUZLON.
for the time being we can just see the moment of how these stks behave abv their H/L level.
FYI i m just giving the H/L of these 3 stks
Stock High Low
Hero Honda 1454.9 1423.25
Rel Cap 910.95 855.1
Suzlon 108.6 102.5
for the time being we can just see the moment of how these stks behave abv their H/L level.
FYI i m just giving the H/L of these 3 stks
Stock High Low
Hero Honda 1454.9 1423.25
Rel Cap 910.95 855.1
Suzlon 108.6 102.5
- Status
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| V | Gold Trading (May 23th) | Metals | 0 | |
| P | afl coding help required for nr7 trading | Algo & Automated Trading | 1 | |
|
Is anyone using NR7 for trading? | Technical Analysis | 28 | |
| B | NR7 Trading help | Advanced Trading Strategies | 6 | |
| J | Trading Straddles using NR7 setup | Options | 5 |