Trading NR7 setup

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rkkarnani

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RKK, Are you taking 10 day ATR here of 10 day Daily Range.
I did mention somewhere in this thread the difference between ATR and Range.
ATR takes care of gaps and prev days H/L to give the real range whereas Range is just H-L.
Like today's Rang e 45..but 1 day ATR for today would be 56.
Would it be correct to say that we take past ten days High minus Low and then take a Moving average of that value!!!?
 

rkkarnani

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24Dec2009 : Range : 73, 10 days Average True Range 88
29Dec2009 : Range : 50, 10 days Average True Range 84
30Dec2009 : Range : 44, 10 days Average True Range 80
31Dec2009 : Range : 38, 10 days Average True Range 78
04Jan 2010 : Range : 37, 10 days Average True Range 75
05Jan 2010 : Range : 32, 10 days Average True Range 73
I have calculated the High minus low of each day and then their SMA of 10 days :

24Dec2009 : Range : 73, 10 days Moving Average of High minus Low 83
29Dec2009 : Range : 50, 10 days Moving Average of High minus Low 77
30Dec2009 : Range : 44, 10 days Moving Average of High minus Low 74
31Dec2009 : Range : 38, 10 days Moving Average of High minus Low 67
04Jan2010 : Range : 37, 10 days Moving Average of High minus Low 64
05Jan2010 : Range : 32, 10 days Moving Average of High minus Low 61
06Jan2010 : Range : 37, 10 days Moving Average of High minus Low 57

Is this what we have to look for!!!??
 

AW10

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Would it be correct to say that we take past ten days High minus Low and then take a Moving average of that value!!!?
That's right Karnani. Take the range of each day. And then average last 10 values.
This will tell u roughly how much market is fluctuating intraday i.e. once it is open (with or without gap), how much price is moving in intraday..

Intarday range will be large when new money enters or leaves the market i.e. biggies are in the market.. else, it is just the operators, daytraders enjoying the game.

Happy Trading
 
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