Trading NR7 setup

[vijayinvitesk]

Has anyone made money using this technique?

 

[abhi_neth]

Recently came across this thread & started going through it. Started paper trading few scrips & Nifty futures according to the rules mentioned in this thread. Getting decent profits on paper.

Thank You AW10 for giving such wonderful setup.

Also, wanted to ask whether this set-up can be used to trade commodities.

 

[rkkarnani]

Recently came across this thread & started going through it. Started paper trading few scrips & Nifty futures according to the rules mentioned in this thread. Getting decent profits on paper.

Thank You AW10 for giving such wonderful setup.

Also, wanted to ask whether this set-up can be used to trade commodities.

Abhi Neth , Why ask!!!, why not tell us by applying it to a few commodities, whether or not it works there?? You get the expirience and we taste the fruit of your efforts!!

 

[AW10]

Recently came across this thread & started going through it. Started paper trading few scrips & Nifty futures according to the rules mentioned in this thread. Getting decent profits on paper.

Thank You AW10 for giving such wonderful setup.

Also, wanted to ask whether this set-up can be used to trade commodities.

Abhi_neth, there is no reason why this setup will not work on commodities or any other market. It is based on one of the fundamental of price behaviour i.e Expansion --> compression --> expansion cycle of price movement. Thru this we are catching the compression zone, and getting ready to trade coming expansion. While expansion can continue for longer time, compression can't (if you are 70kg, you may find it extremely difficult to cut your weight below 50-55 range. But if you have to gain the weight then 200+ is also possible).

I like RKKarnani's call for action oriented reply. I will support that and encourage you to open commodities chart and just do a objective visual chk first. And if it looks promosing then go down to more detailed test.

Happy Trading

 

[adityasaraf007]

Abhi_neth, there is no reason why this setup will not work on commodities or any other market. It is based on one of the fundamental of price behaviour i.e Expansion --> compression --> expansion cycle of price movement. Thru this we are catching the compression zone, and getting ready to trade coming expansion. While expansion can continue for longer time, compression can't (if you are 70kg, you may find it extremely difficult to cut your weight below 50-55 range. But if you have to gain the weight then 200+ is also possible).

I like RKKarnani's call for action oriented reply. I will support that and encourage you to open commodities chart and just do a objective visual chk first. And if it looks promosing then go down to more detailed test.

Happy Trading

However, this assumption doesn't always hold good. Have a look at this Spreadsheet. It contains the Monthly data for Dow Jones of the last 8 Decades and have a look at continuous compression during the 40's, 50's, mid 70's, mid 90's and some portion of last decade. Just a visual look at the last two columns would give the impression.

AW Sir, please share your views.

 

[abhi_neth]

Abhi Neth , Why ask!!!, why not tell us by applying it to a few commodities, whether or not it works there?? You get the expirience and we taste the fruit of your efforts!!

That's what I was planning to do, but just asked so that in case someone had already done it, then I can get head's up on my research.

Thanks

 

[rkkarnani]

However, this assumption doesn't always hold good. Have a look at this Spreadsheet. It contains the Monthly data for Dow Jones of the last 8 Decades and have a look at continuous compression during the 40's, 50's, mid 70's, mid 90's and some portion of last decade. Just a visual look at the last two columns would give the impression.

AW Sir, please share your views.

Aditya, Somehow could not open the spread sheet, would try to do it again. However I am sure that if you find NR7 (contraction) in Monthly data, it sure has to work. There ought to be a move in one direction (expansion). Do try to set up the data in an Excel sheet where NR7 are identified and check the subsequent moves.
Will myself try to do it though am not much comfy with Excel sheets etc.

 

[rkkarnani]

Aditya , opened your Excel Sheet with Dow historical monthly data... to me at first glance seems it has HUGE potential for application of this Setup of NR7, should give excellent returns.. one has to device the strategy based on past records.. moreover it seems good on paper but its an herculean task to actually trade Monthly charts!! Trying to put the data in Metastock to post the charts, not sure I have enough knowledge about MS to do it. Request any one who can do it to post a few random charts of the Data provided by Aditya!! It should be a nice lesson in NR7!

 

[speed]

Thanks AW10 and other members who have contributed.

I am new member... Glad to see people have developed certain strategies...back testing it and implementing it...

I have never done all these...that's why never got consistent profit....

Will go through the whole thread/will back test for my selected list of stocks and will publish the result..

My list contains Titan,chambal, apollo, ITC,SBI bank,hind zinc and few more..will publish in the excel

 

[AW10]

Thanks Speed for your kind words.
Just few pointers, What type of trader are you.. i.e. what timeframe you trade ?
If you are daytrader, i.e your trades are windup in 1 day, then look for checking it in daily timeframe. But if you are swing trader, where trade goes beyond a day then start with Weekly timeframe data, try to identify NR4 weeks (cause NR7 weeks is rare), and then see how price behaves after breaking the weekly range on daily chart.

Hope this helps. All the best to you in your new excercise.
Happy Trading