Trading NR7 setup

[AW10]

I would suggest you include the relevant resources(like ur excel template, AFL etc) in the first post of the thread for quick reference. Just my opinion.

I wonder, many a time, why such obvious points don't struck to my dumb mind.
Thanks a lot Ankit for suggestion. It is implemented in post #5 of this thread.

Happy Trading

 

[AW10]

I would suggest you include the relevant resources(like ur excel template, AFL etc) in the first post of the thread for quick reference. Just my opinion.

Sanjay, plz chk post #5. Based on Ankit's suggestion, I have included few links there.

Happy Trading

 

[AW10]

Hi AW10 and Murtaza Bhai,

I have tried to implement your ideas. The following image shows the result. If it is okay I will post the AFL here and you can suggest further additions.

The non-NR Inside Days are marked with a hollow circle above the corresponding bar. IDNR4 bars are marked with an orange star and IDNR7 by green star above the bar. NR7 marked with a circled 7 in green and NR4 with circled 4 in orange color at the bottom of the bar.

When the tracking line is brought on the bar the corresponding text (IDNR7 / IDNR4 / NR7 / NR4 / Inside Day) is also displayed in the chart title at the top.

Regards

-Anant

Anant, I have provided links to your AFL post from one of my post meant to collect USEFUL RESOURCES at the start of this thread.
Do you mind sharing your updated AFL (that marks IDNRx/ NR4/ NR7) so that I can update the Resources post. You can take your time, if it is work-in-progress and share whenever it is ready.

Thanks again for your contribution.

Happy Trading.

 

[asnavale]

Anant, I have provided links to your AFL post from one of my post meant to collect USEFUL RESOURCES at the start of this thread.
Do you mind sharing your updated AFL (that marks IDNRx/ NR4/ NR7) so that I can update the Resources post. You can take your time, if it is work-in-progress and share whenever it is ready.

Thanks again for your contribution.

Happy Trading.

Hi AW10,

I am modifying the AFL to include the modifications suggested by Murtaza. As I am also working with an AFL in Savant Garde's Thread "Stocks to Keep and Eye on - Chapter II", it is taking a little more time. In addition, the suggestions of Murtaza when put on logically, are giving some new conditions which have to be properly taken care of while writing the code. These conditions may occur very very rarely in actual situations, but the AFL must address to all possibilities however rare they may be. In fact I was to post a query on this issue which I will do later (may be tomorrow) so that I can get a clear picture of what is needed.

Thanks for providing a link and bringing the post in easy reach for all.

Regards

-Anant

 

[nick721156]

It is pretty easy to do this in excel with simple formulas. I am attaching the file with this post.
Happy Trading.

Dera AW10,

I am not able to get the excel file. I tried to save it; but getting a Login page of Traderji instead. Please do assist.

Regards,

Raju

 

[bandlab2]

DLF 15 min chart

I adopted this to intraday. some rules

1. must be NR7
2. must be inside bar
3. candle must be above SMA20 for taking long. must be below SMA20 for shorts
4. SMA20 must be sloping up for long, must be sloping down for short
5. allign with NSE. direction is same as NSE . for bank stocks, allign bank nifty, midcaps, IT, realesate.... their own index
6. must have daily turnover of 200 crores,


Long
Entry : NR7 bar hi + filter. my filter is 20% of NR7 range
Take Profit : NR7 hi + 2*range
SL : NR7 bar low - filter

same rules for shorts in opposite direction

on some occassions i take NR8 (even if its not inside nar) with above rules for high beta stocks like icici, dlf, jpass, axis, unitech, tatasteel, ifci ...

 

[AW10]

Welcome back Bandlab2, Haven't seen yr posts here from long time.
Hope yr trading is going well.

Your setup rules looks fine to me. except

2. must be inside bar

NR7 is for catching the consolidation/contraction. If it happens within prev bar, giving us Inside bar, it is fine.. but that doesn't mean that consolidation beyond prev bar range is not valid.

So I would remove this condition.. or reduce its importance from MUST to more flexible.

What about exit rules.. How about putting the target of breakout equal to the width of consolidatation range. Atleast u can get 1/2 position out there and trail remaining position using Pivots .. or set a second target as next PH/PL depending on the direction of break.

Happy Trading.
Do u have any feedback about results..

 

[rohangawale]

NR4 day with range of 61 points.

 

[Aqua9]

Hi Rohan/AW10

But NR4 and NR7 in past 2 incidents have not worked either ways.

Infact as per 25th closing it was IB but no much effect though.

Hopefully some action to see tomorrow.

rgds
arun.

 

[AW10]

Arun,
This setup is breakout from consolidation, and many a time, it takes more then one bar to breakout.. or it is also possible that we might get caught in false breakout.
Last week was one of the narrowest week.. (weekly range 132 against 10w average range of 211).
In such tight range market, it is possible that there will be false breakout..

NR4/NR7 is a setup that tells u something about what mkt is doing now and what is possible in next few days.
So that you are well prepared to benefit from the opportunity that is just around the corner.


Lets look last 3 tight weekly range of the past and after-effect of that..

		Weekly range		10wk average range 
1) 31/Aug 		159 			270
    Upper Breakout of this range at 4736 took the market to 5030 level.  (300 pts opportunity)
2) 29/June 		190 			315
    Down Breakout of this range at 4250 took the market to 3920 level. (330 pts opportunity)
3) 24/Feb		120			198
     Down Breakout of this range at 2658 took the market to 2550 level.  (100 pts followed by 2400 pts)
     But the reversal from there and then upper break of this range at 2798 is 
     still continuing.

So use the signal given by this setup and draw your own strategy to benefit from it. By their nature, breakout trades have low success rate, hence we need to be prepared to accept that and every breakout will not work.. But over a period of time, it does work. Due to Narrow range, your stops are tight. So loose less but when u win, the size of opportunity is significant provided ur systems know how to ride the trend.

Happy Trading