Trading NR7 setup

[lazytrader]

Thanks can we go down to say 10 min or 15 min time frame once we get these NR patterns on Daily and trade with Moving avrage ........for intraday

And in 30 min chart for takin positions overnight with same 3,5 and 13 moving avg ....

Sunil, who has experience trading NR intraday says below 30min it doesn't look reliable. I don't have any experience with NR in intraday since I trade much lower timeframes where I basically look for volatility usings BB (ATR sometimes).

NR's have a critical range, you look for daily NR if you trade swing or weekly NR for a positional trade (which is 5 days on daily). Some call it "Sushi roll" call it whatever but in essence what you look for is a particular time duration in which the scrip should have gone so far but still stuck at a point so on smaller durations I think you can still apply the same principle but after a point the breakout and the target are too close or not so reliable that RR doesn't favour so try a higher TF.

Simply put the Nifty daily candle is 133 pts (atr) and the 1 min is about 2pts so when you are playing a breakout of NR or daily you get the room to trade and profit from it net of costs. As you see when TF reduces the margin of profit and error reduces after a point the there is no point trying to play it.

However NRs are simple so you can try to gauge your costs and targets and figure out if they are worth by looking at RR.

 

[AW10]

Thanks can we go down to say 10 min or 15 min time frame once we get these NR patterns on Daily and trade with Moving avrage ........for intraday

And in 30 min chart for takin positions overnight with same 3,5 and 13 moving avg ....

NR7 has given u clues about what might happen. As a daytrader, I will go down to my own timeframe and look for signal to support my setup. eg. - if NR7 is broken on upside, that means any long trade has better odds of success.. so I shd be looking for entering long trades. Also indicates that, if u take short trade when mkt is breaking upward, the odds are against you and there are chances that trade might get stopped out.

You can use system that u trust, and wait for the signal to support the bigger picture given by NR7 breakout.

Carrying over position to overnight is altogether different topic.

Why don't to backtest your approach of following 3/8/15 MA to decide to carry over to next day or not and let the result speak for themselve.

Happy Trading.

 

[AW10]

Hello AW10
I intend to go through that post of yours today and get back to you soon.

Yeah, I was fortunate enough to snag an original copy of Crable's book about 8 years ago. But I didnt know about Crable if I hadn't read LBR's book called Street Smarts which was released in 1999. I feel every day trader or swing trader should read Linda's book. It's worth so much more than the price of the book. I've mine personally autographed by Linda.

Regards
Shreenath

Shreenath, I have read both the books. Original is original. But it has gained popularity after Linda's book.
As long as we get the tool, I don't care so much about the source. Ofcourse, I will give due credit to the originator.

Happy Trading

 

[Shreenath]

Hello AW10
I agree, source is irrelevant. Credit should go to Toby though.......in fact he decided not to publish the book because he started his own hedge fund which was worth more than a billion about 6 years ago; dont know how its doing now.....

For me it helps me to become aware of the trend days where one has to watch out and also can take advantage to make more than just scalping.....

Regards
Shreenath

Shreenath, I have read both the books. Original is original. But it has gained popularity after Linda's book.
As long as we get the tool, I don't care so much about the source. Ofcourse, I will give due credit to the originator.

Happy Trading

 

[Satyen]

NR7 has given u clues about what might happen. As a daytrader, I will go down to my own timeframe and look for signal to support my setup. eg. - if NR7 is broken on upside, that means any long trade has better odds of success.. so I shd be looking for entering long trades. Also indicates that, if u take short trade when mkt is breaking upward, the odds are against you and there are chances that trade might get stopped out.

You can use system that u trust, and wait for the signal to support the bigger picture given by NR7 breakout.

Carrying over position to overnight is altogether different topic.

Why don't to backtest your approach of following 3/8/15 MA to decide to carry over to next day or not and let the result speak for themselve.

Happy Trading.

Thanks AW10 ..... Will do that Now commin to another thinking as Days aftr
NR7 day berak out will have swings we may use ORB concepts in those days also ?? Ok will check myself

 

[rohangawale]

todays spot nifty range is 87 points.
last 7 days ranges are
132
160
100
131
155
85.

so i think we can consider todays range as NR7 as there is diff of just 2 points. and tomo we can expect a WS day on nifty on either side of breakout,.
lets wait for the breakout and see wat happens

 

[Sunil]

Not just NR7, but also IB
http://www.traderji.com/trading-diary/29778-daily-tryst-nifty-87.html#post338825

 

[rohangawale]

We got a outside day after an NR6 day.
the range of todays day is nearly 178 points.
this shows the strength of the pattern.

 

[AW10]

Today was typical case that challanges breakout traders. Once market breaks in one direction and soon that breakout turns into a false break and we see reversal of trend.
This also makes typical engulfing candlestick pattern (we had bearish engulfing today on Nifty).

In the morning, we saw upside break of NR6 days high (4524). Breakout trader might have gone long above NR6 days high (4524) with Stop at yesterdays (4436).
During the second half, market reversed and took away the stop of prev days low.

Sensible strategy would be to double the size of stoploss position when entered into first long trade today.
That would result in net One Short position at the end of the day (4436). Current stop will be at the high of today (4550). Loosing 88pts on stopped trade with paper profit of 4436-4400 = 36 pts.

Lets see what market needs to show tomorrow.

(This post is to give u idea about bigger picture and use of simple setup to identify breakouts. Plz trade what u see and what your strategy says.).

Happy Breakout trading.

 

[WOD]

Absolutely right...we had a false breakout in morning....but then breadown that happened seems like real one and that is the reason I have taken short position....

But as you say lets see tomoro...