Trading NR7 setup

[AW10]

Satyen, That is really good finding to know. In my view, when you stop the trade has more to do with your exit conditions or your timeframe. Here are few ideas -

1) As NR4 gives a indication of expansion then you may like to stop when this expansion is over.. i.e. u see another NR4 for consilation
2) or you see some type of reversal like PH/PL break of daily TF or Stop as Parabolic SAR etc.
3) By visual backtesting, u can find the typical size of weekly expansion.. say 2 to 3 weekly bars.. so you can use that as your time bound exit criteria. i.e.close trade or the particular breakout after 3 weekly bars. you might have trends even bigger then 3 weeks..so your judgement or knowledge of statistics here. Generally, we should see another round of consolidation with Daily NR7 or weekly NR4 before further trend develops.

These are just few ideas. Hope this helps.
Happy Trading

 

[Satyen]

Thanks Dear AW10

 

[simple_trader]

I guess good example of NR7 was last week's breakout above 5170 (NIFTY weekly chart). It extended more than 100 points above the high. One go breakout.

 

[Rajkumar_cmk]

Thank you AW10 for your nice reply

 

[rkkarnani]

Hi all i was looking the weekly contraction NR4 in nifty future and after that how market behaves in 60 min chart ....... found we generally hit a trend after weekly NR4 in 60 min ,

My problem is i want to calculate the profit/loss after certain no of trading or after the expansion on weekly .... in this way i wanted to trade around a event in this case NR4 on weekly and indipendent of contineus trading through out the month or quater after which we calculate our profit/loss

And observed if we start trading on 60 min after NR4 detected on weekly after certain no of trading we are in profit , almost every NR4 week from jan 08 gives profit

but problem is When i should stop trading for my calculation ??

Can you elaborate a little about how are you trading the hourly chart? Your entry , SL etc....
At first glance at NR4 bars since April 2009 I was not much enthused, its very much possible that I am making some mistake in understanding what you wish to convey!

 

[Satyen]

Hi RKK Idea is to use possible expansion after we have contraction on weekly ,,here only taking NR4 , as we know it will triger a trend on daily once it breaks out , wanted to take advantage of this possible expansion on weekly which is a trend on daily as well as on hourly ......

Most of trading sytems ,set ups etc where we should be trading whole month or the quater if we take a break etc we always fear that we may miss the mega trend so when we come back we will have lot of hesitation to take trade in the middle of a month

So wanted to do once we detect a weekly contraction here taking NR4 then we will start trading untill we have expansion on weekly which is large trend on houly once we in profit or expansion happened we will be in profit and stop trading and we are free bird now ,, we will wait for next oppertunity its weekly contraction and we become active once detected if we r bussy in some thing then we leave it wait for next one as our profit /loss calculated around a event like contraction

now how we will trade we will trade 60 min time frame by our comfert may be thru pivot , EMA cross over etc

Hope i am clear............

 

[AW10]

Just to add another perspective to what Satya has mentioned..

In TA we always go from higher TF to lower TF in our analysis... but when market develops, then Lower TF changes the direction first, and then gradual higher TF starts chaning the direction as well.. So if we keep the perspective of multiple TF in mind and use that to hold or windup our lower TF trend, it could help us in taking entry on 5 min chart and riding weekly wave..

Great way to catch big winners and ride them as long as possible.
It is like building your trade from lower TF + lower risk + lower reward to HIGHER TF + LOWER risk + HIGHER reward.

Happy Trading

 

[rkkarnani]

Hi RKK Idea is to use possible expansion after we have contraction on weekly ,,here only taking NR4 , as we know it will triger a trend on daily once it breaks out , wanted to take advantage of this possible expansion on weekly which is a trend on daily as well as on hourly ......

Most of trading sytems ,set ups etc where we should be trading whole month or the quater if we take a break etc we always fear that we may miss the mega trend so when we come back we will have lot of hesitation to take trade in the middle of a month

So wanted to do once we detect a weekly contraction here taking NR4 then we will start trading untill we have expansion on weekly which is large trend on houly once we in profit or expansion happened we will be in profit and stop trading and we are free bird now ,, we will wait for next oppertunity its weekly contraction and we become active once detected if we r bussy in some thing then we leave it wait for next one as our profit /loss calculated around a event like contraction

now how we will trade we will trade 60 min time frame by our comfert may be thru pivot , EMA cross over etc

Hope i am clear............

Thanks Satya, I have been able to grasp what you are trying to do, atleast I think I do. And thanks to AW also for giving his input. Frankly there is somewhere ,which I am probably still unable to identify , something which is not properly understood by me. Please have patience and do try to post a chart of Weekly contraction and follow up trades in hourly! As they say a picture is worth a thousand words!!! Please do it whenever time permits!!!

Can we put it in steps :

01. We have a NR4 Week.
02. We go Long or Short above/below the .....following Hourly charts.
(By what method we trade the hourly, same NR4 or something tweeked)
03. We keep the .....???? level as our entry SL.
04. We review when another week is over.
05.We trail our SL as per .....
06. We Exit Partly / Fully at
07.
08.

Satya, please take the post in proper spirit!!!

 

[Satyen]

[B][B]Satya, please take the post in proper spirit!!! [/B][/B]:D

Hi Dear Rkk i just love you are asking these questions thanks a lot for that this way we can take this idea to a possible system .......

Can we put it in steps :

01. We have a NR4 Week. 
02. We go Long or Short above/below the .....following Hourly charts. 
(By what method we trade the hourly, same NR4 or something tweeked)
03. We keep the .....???? level as our entry SL.
04. We review when another week is over.
05.We trail our SL as per .....
06. We Exit Partly / Fully at 
07.
08.

Her I am trying to explain the points raised by you

01. We have a NR4 Week.

Yes once we have a NR4 on weekly we ready for trading though other concept like doji on weekly can be implimented for this but for time being we will concentrate on NR4 on weekly, here we only have the information that market or nifty in indecissive mode will break out soon, we will use this piece of information in our trading

02. We go Long or Short above/below the .....following Hourly charts.

Now we are ready to trade once NR4 detected , yes here we trade the 60 min time frame , here we will not look for any thing else only 60 min time frame we will trade both ways longs/shorts ,we will trade by pivot or any EMA cross overs like 3 and 13 EMA cross etc
all the stop loss will be according to 60 min chart may be pivots , break out bars etc

03. We keep the .....???? level as our entry SL.

As we decided to trade 60 min chart our Stop will be according to that , for example if i will trade the 60 min timeframe through pivot my stop will be according to pivots ( you know about 60 min flow)

04. We review when another week is over.

Cuould not get this point , yes once we have done with expansion on weekly which is huge trend on 60 we may stop

( This is where i have problem when to stop , how to define expansion has happened etc , though AW10 has given some ideas to think )

05.We trail our SL as per .....

We trail stop our trade according to the method we chose if we chose pivot then pivot will be the trail stop point or we may chose EMA cross overs any trend following method on 60 min will do good i think

06. We Exit Partly / Fully at

When we will exit we exit the full position , we will continueing trading both direction untill we believe we have our expansions done in weekly


Will post a chart ......

 

[rkkarnani]

Satya, would it be correct to say that we are looking for a NR4 week and as we are expecting Range expansion there after we Trade the hourly chart on the premise that the market is trending and not in a congestion zone!! The role of NR4 ends there. There is nothing to do with the levels of NR4 bar!!???
When you say we trade both Long and Short as the trade comes in Hourly, we are looking at hourly alone and not at higher TF like weekly etc.