Trading NR7 setup

[simple_trader]

If my eyes are ok, then it seems ICICIBANK is daily candle NR7?

 

[wormski]

Nice one. Nice way to trade.
Can we have some excel sheets/software which can pull the data and plot it accordingly.

 

[trader.trends]

Nice one. Nice way to trade.
Can we have some excel sheets/software which can pull the data and plot it accordingly.

NR7 is a trade set up. It is not a trading system. NR7 is used by many traders in different ways. It basically identifies range contraction. It tells us when the volatility has slipped to the lowest in the past seven days.

How you want to use the informations is upto you. NR7 does not have a directional bias. You gather the directional bias from the 'background' as VSA folks would put it.

The way to find NR7 days in an excel sheet is given in one of the earlier post. Have a look at it.

 

[shanki99]

can some one plz post NR7 details for 12th March EOD??

seems a NR7 week in NF

 

[amit_k2100]

hey rohan...bother where r u ...we r missing u... nd ur NR7 breakouts

 

[rkkarnani]

Stocks and futures Forming NR7 on 16th March :

Security Name	High	  Low	      Range
ABB LTD	                851.8	  837.35	14.45
ALL. BANK - 1M	        145.7	  142.85	2.85
APIL - 1M	                  587   580.65	6.35
AURO PHARMA - 1M	948.1   934	       14.1
AXIS BANK	              1148.9	 1132.5	16.4
AXIS BANK - 1M	     1149.45	 1132.6	16.85
BAJAJ HIND  - 1M	     150.9	  147	        3.9
BHARTI 	                299	  292.55	6.45
BRFL  - 1M	              223.3	  219.55	3.75
CANARA BANK - 1M	405	  400.55	4.45
CONCOR - 1M	    1238.75	  1228.1	10.65
CUMMINS  - 1M	      477.9	 474.3	  3.6
DISHTV - 1M	        37.8	  36.9          0.9
DIVI''S LAB  - 1M	      625.8	 618.5	  7.3
G E SHIPPING  - 1M	292	 287.5  	  4.5
GTLINFRA - 1M	       41.85	 41.35	  0.5
HERO HONDA	    1939.05	1905	       34.05
HIND UNILEVER	       227.7	225.05	2.65
HIND UNILVR  1M	       226.9	224.55	2.35
HDIL  - 1M	               306.2	300.15	6.05
JPASSOC	                 150	146.55	3.45
LIC HSNG FIN - 1M      817.7	807.35	10.35
MARUTI  	             1462.8	1436.45	26.35
MLL - 1M	               59.45	     58	 1.45
MPHASIS  - 1M	      664.95	    655	 9.95
NTPC                       203.85	  201.65	 2.2
OPTOCIRCUI - 1M 	226.3	  223.15	 3.15
PFC LTD - 1M	       265.55   260.3	 5.25
POWERGRID - 1M	        105.5	   104.4	 1.1
PRAJ INDS - 1M	          86.6	      85	 1.6
PUNJ LLOYD - 1M	        175.9	   173.2	 2.7
ROLTA INDIA - 1M	184.5	  181.15	3.35
SESA GOA  - 1M	        436.5	   429.3	7.2
SIEMENS LTD	        733.9	   721.5	12.4
STERLING BIO - 1M	106.8	   104.75	2.05
TATA CHEM - 1M	        313.9	   308.8	5.1
TECH MAHINDRA - 1M	  921	   912.4	8.6
TITAN  - 1M	         1818	  1796	22
UNITECH	                  75.2   73.9	1.3
UNITECH - 1M	          75.5	  74.15	1.35
UNITED SPIRITS - 1M 1440.45  1415      25.45

 

[shanki99]

rkkarnani saab...thanx

ur range of stocks are more....plz continue to post....

 

[simple_trader]

I was tracking ICICIBANK. It fell 2% after breaking low of NRX.

nice strategy!!

 

[Karanm]

Just initiating this thread to discuss possible expansion setup

1) What is NR7 pattern (Narrow Range 7) ?
Market goes thru regular contraction (i.e. daily trading range getting shorter and shorter) and expansion (i.e. daily trading range getting bigger) cycle. Expanding range is followed by Contraction and vice-versa. So if we can indetify the narrow range days, then it give us a step ahead of everybody to benefit from coming expansion.

NR7 is term given to a day that has the daily range smallest of last 7 days including that day.

NR4 is variation of this where the lookback period is 3 days + current day i.e. 4 days.

E.g. -

[B]Date	         High            Low             Range	Remark[/B]
27-May-09	4,286.45	4,115.25	171.20	
28-May-09	4,354.85	4,254.85	100.00	
29-May-09	4,488.05	4,340.75	147.30	
1-Jun-09        4,545.40	4,450.40	95.00	NR 4 day. Range smallest of last 7 entries from 28/May till today i.e. 1-Jun )
2-Jun-09	4,586.40	4,453.40	133.00	
3-Jun-09	4,574.90	4,478.60	96.30	
4-Jun-09	4,582.20	4,453.45	128.75	
5-Jun-09	4,636.85	4,561.95	74.90	NR 7 day. Range smallest of last 7 entries from 28/May till today i.e. 5-Jun )
				
8-Jun-09	 4,611.40	4,404.65	206.75	Break of the low of 4561 of NR7 day took it to low of 4365 in next 2 days.  Notice the range expansion (206+197 points).
9-Jun-09	 4,562.45	4,365.10	197.35

As far as I know, this setup was discussed by Toby Crabel first. Later Linda Raschke has also discussed this in her book "The street smart". To know more about them you can either refer to these sources or raise questions here and I /other members here will try to clarify it.

Happy Trading.

How to Find NR7 day..

1) Get the High and Low data of last few period
2) Calculate the range of each day i.e. high - low) for each day
3) Compare the range of a today and previous 6 days range (to get NR7. To get NR4 get last 3 days range)
4) If todays range is smallest of all 7 days, then today is NR7 day..else not.

It is that simple.

Sir, Thankyou for providing so Simple yet so effective Statergy to Trade.

Sir, can you kindly guide how to Enter & Exit trade with NR7 Statergy, what will be the Stop loss.I am asking for Exit point because once you are in Profit, you should definately know where to exit and take maximum Profits as for failure Trades we know our Stoploss and maximum Loss.

Sir, lastly what success ratio & Risk/Reward we can expect with your NR7 Statergy(as per back testing)

Reagrds
Karanm

 

[rkkarnani]

Sir, Thankyou for providing so Simple yet so effective Statergy to Trade.

Sir, can you kindly guide how to Enter & Exit trade with NR7 Statergy, what will be the Stop loss.I am asking for Exit point because once you are in Profit, you should definately know where to exit and take maximum Profits as for failure Trades we know our Stoploss and maximum Loss.

Sir, lastly what success ratio & Risk/Reward we can expect with your NR7 Statergy(as per back testing)

Reagrds
Karanm

Hi Karan, This not a strategy!!!!! This is only a SETUP.... one has to build his own trading rules as per his comfort level and trading psychology. Accordingly one has to identify his own Exit point too!! This may differ from stock to stock and maybe in your scheme of things it may not differ. Have a look at historical charts and data and innovate a strategy!!

Once you are sure that it is giving profit do share it here!!
:rofl: