Trading NR7 setup
- Thread starter AW10
- Start date
- Tags narrow range nr 7 nr4 option trade
- Status
NR7 Stocks Triggered on 17th Feb:
Code:
[B]STOCK HIGH LOW[/B]
BPCL 574.95 562.4
BHEL 2,410.00 2,378.80
GRASIM 2769 2731
HCL TECH 364 358
HDFC 2475 2442
HERO HONDA 1709.9 1680.3
ICICI BK 847.7 830.6
JP ASSO 139.9 137
M & M 1040.85 1022
MARUTI 1386.9 1365.3
ONGC 1119 1095.15
POWER GRID 107.75 106.7
PNB 894.9 885.55
TATA MOTORS 722 708.05
TATA POWER 1271.5 1245NR7 Stock Close on 18th Feb:
Code:
[B]17-Feb 18-Feb
STOCK HIGH LOW Close Day Range Trigger[/B]
BPCL 574.95 562.4 591.2 52 Up Break
BHEL 2,410.002,378.80 2373.6 36 Down Break
GRASIM 2769 2731 2,707.45 63.00 Down Break
HCL TECH 364 358 360.7 7 No Breakout
HDFC 2475 2442 2480.95 44 Up Break
HERO HONDA 1709.9 1680.3 1703.00 30.00 No Breakout
ICICI BK 847.7 830.6 840.05 19.00 No Breakout
JP ASSO 139.9 137 135.90 5.00 Down Break
M & M 1040.85 1022 1013.20 33.00 Down Break
MARUTI 1386.9 1365.3 1359.65 41.00 Down Break
ONGC 1119 1095.15 1103.50 45.00 No Breakout
POWER GRID 107.75 106.7 108.15 3.20 Up Break
PNB 894.9 885.55 896.00 29.00 Up Break
TATA MOTORS 722 708.05 709.85 16.00 No Breakout
TATA POWER 1271.5 1245 1252.95 46.00 No BreakoutAW10
The ATR as you know is the max of the diff between H-L, PC-H and PC-L. If we take the average of the past seven days ATR, we get the 7ATR. Generally the market tends to respect the ATR to a large extent. When I looked at the 7ATR of the past couple of months on NF, I find that any day's ATR is more or less the same as the previous day's ATR. And when the ATR jumps like it did today due to range expansion, then the 7ATR jumps by a factor of 10. Now the 7ATR stand at around 70. It was around 60 yesterday. If Tuesday the 7ATR has to be around 70 then the days range has to be around 43. (7*70 less the sum of the previous 6 days actual range). This gives us the anticipated high from today's close of 4932 at 4986 and the anticipated low at 4878 after giving a ten point margin.
How valid are 7ATR or 14ATR to judge the anticipated H/L? What is your experience with them. Many trader do use 7ATR or 14ATR of twice the daily ATR as the stops for their trade. If we can judge the anticipated H/L it helps us to wait the day and take a trade at the edge of the day's range. Alternatively when we see the open is same as the H/L in the first few minutes of trade opening, we can anticipate where the market will head if it heads in one direction to reach the 7ATR boundary.
Is there a method to trade using 7ATR? This is different from 7NR, but still dealing with trading ranges hence this post in your home thread.
The ATR as you know is the max of the diff between H-L, PC-H and PC-L. If we take the average of the past seven days ATR, we get the 7ATR. Generally the market tends to respect the ATR to a large extent. When I looked at the 7ATR of the past couple of months on NF, I find that any day's ATR is more or less the same as the previous day's ATR. And when the ATR jumps like it did today due to range expansion, then the 7ATR jumps by a factor of 10. Now the 7ATR stand at around 70. It was around 60 yesterday. If Tuesday the 7ATR has to be around 70 then the days range has to be around 43. (7*70 less the sum of the previous 6 days actual range). This gives us the anticipated high from today's close of 4932 at 4986 and the anticipated low at 4878 after giving a ten point margin.
How valid are 7ATR or 14ATR to judge the anticipated H/L? What is your experience with them. Many trader do use 7ATR or 14ATR of twice the daily ATR as the stops for their trade. If we can judge the anticipated H/L it helps us to wait the day and take a trade at the edge of the day's range. Alternatively when we see the open is same as the H/L in the first few minutes of trade opening, we can anticipate where the market will head if it heads in one direction to reach the 7ATR boundary.
Is there a method to trade using 7ATR? This is different from 7NR, but still dealing with trading ranges hence this post in your home thread.
TT your explanation, understanding and usage of ATR is perfectly on the spot.
Whether u use 7 days or 14 days as look back period, it is individuals choice. You can certainly use it to define probable range of tomorrow..
You can use this to define stops for tomorrow (or on the next bar in case of smaller timeframe). I prefer to use ATR for stop placement and trailing SLoss.
You can design a system using ATR based projected level to decide buy/sell zone and generate signals there.
Only your backtest results will tell u if the system will work or not. If you dig deeper, the floor trader pivot points/ Cams pivot point etc use this info with slight tweak.
So it is possible to define profitable system on this foundation.
If nothing then atleast you can use this to book profit and trail SL. You can use multiplying factor 1 /2 or 3 on 7d-ATR or 14d-ATR but that all is upto your belief and personal choice that suits your mindset.
IMO, there is no single answer to that.. I do use 3 ATR from last swing high/low as my ultimate cut-off point (just in case my system has not given earlier exit).
by the way, don't confuse it with NR7 that is discussed in this thread. Cause the range used in NR calculation is NOT ATR. It is just high-low of each bar. So if there is gap and market remain in small range after the gap, then we might get NR7, but ATR will be very high. Better to use them side-by-side and interpret the market behaviour.
Hope this helps.
Happy Trading.
Whether u use 7 days or 14 days as look back period, it is individuals choice. You can certainly use it to define probable range of tomorrow..
You can use this to define stops for tomorrow (or on the next bar in case of smaller timeframe). I prefer to use ATR for stop placement and trailing SLoss.
You can design a system using ATR based projected level to decide buy/sell zone and generate signals there.
Only your backtest results will tell u if the system will work or not. If you dig deeper, the floor trader pivot points/ Cams pivot point etc use this info with slight tweak.
So it is possible to define profitable system on this foundation.
If nothing then atleast you can use this to book profit and trail SL. You can use multiplying factor 1 /2 or 3 on 7d-ATR or 14d-ATR but that all is upto your belief and personal choice that suits your mindset.
IMO, there is no single answer to that.. I do use 3 ATR from last swing high/low as my ultimate cut-off point (just in case my system has not given earlier exit).
by the way, don't confuse it with NR7 that is discussed in this thread. Cause the range used in NR calculation is NOT ATR. It is just high-low of each bar. So if there is gap and market remain in small range after the gap, then we might get NR7, but ATR will be very high. Better to use them side-by-side and interpret the market behaviour.
Hope this helps.
Happy Trading.
Hi people,
Ive been trying to setup the NR7 AFL formula in amibroker but have some issues.
Sometimes, my data feed shows a bar with a zero range, that is, O, H, L, C are all the same (usually happens after market hours). Because of this, the whole NR7 formula is getting wasted as this bar is the lowest and shows up for the formula.
Can you please let me know how we can modify the formula so it ignores the zero range bar?
Thanks!
Ive been trying to setup the NR7 AFL formula in amibroker but have some issues.
Sometimes, my data feed shows a bar with a zero range, that is, O, H, L, C are all the same (usually happens after market hours). Because of this, the whole NR7 formula is getting wasted as this bar is the lowest and shows up for the formula.
Can you please let me know how we can modify the formula so it ignores the zero range bar?
Thanks!
Younus, seems that you are doing intraday trading and hence using intraday data and have this issue of ZERO range bar.
My sincere suggestion, you have proble with your data provider. If you are intraday trader, then u got to have good intraday data to make efficient decision. By changing the AFL given by Anant, u may get your AFL to run correctly, but in my view, you are fooling yourself by ignoring 1 bar in between due to lack of data.
Now-a-day, u can fairly good intraday data from investbulls and other feed providers for as low as 350 rs a month. I am sure, as a intraday trader, u pay lot more then this as your stoploss, or brokerage etc. So plz don't cut corner and try to penny wise and pound foolish. Better to get good data feed.
Hope this helps.
Happy Trading
My sincere suggestion, you have proble with your data provider. If you are intraday trader, then u got to have good intraday data to make efficient decision. By changing the AFL given by Anant, u may get your AFL to run correctly, but in my view, you are fooling yourself by ignoring 1 bar in between due to lack of data.
Now-a-day, u can fairly good intraday data from investbulls and other feed providers for as low as 350 rs a month. I am sure, as a intraday trader, u pay lot more then this as your stoploss, or brokerage etc. So plz don't cut corner and try to penny wise and pound foolish. Better to get good data feed.
Hope this helps.
Happy Trading
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