Trading NR7 setup

[Pradipjee]

ok todays trading booked loss. sold 300 of pnb stocks and booked a loss of 1000... never into longside...

Mistake: As a trader i should have a mindset and willing to trade in both ways.... but since i was having a mindset on shortside... i went short and paid the price for wrong mind set... hope i shall correct it from tomorrow....

Moral: Day traders must be willing to trade on eitherside... should not have frame set....

It's okay. never mind. We all make mistakes for our incorrect mindset. We learn from our mistakes that would pave our way to success.

Pradipjee

 

[Brill]

Using KeyStocks-Lite free version, U can scan NR7 pattern & also other pattern. It's availale free try in Google for particular web link.

U can also make Excel sheet for your specific stocks. In this u've to calculate daily range using High & Low .For this pls visit first page of this thread where AW10 have already described how calculate range.

angira...

Please find the above post on how to find NR7 stocks

Regards

 

[raynor]

Reserved for future

 

[umeshmandal]

Raynor, One cannot edit his/her Post after lapse of certain time. So the "future use" better be in time !

 

[Siju Thomas]

@ Brill
Why did you stop posting NR21/NR7 stocks ?. It was really helpful.

 

[Brill]

there was 2 reason i started posting
1. CONTINUE this wonderful thread started by AW10 (though i am nowhere near the seniors in TraderJi) 2.Myself wanted to learn and be a full-time trader

but due other personal commitments i think i can't be a full-time trader - for time being. And don't get enough time to post CONSISTENTLY.

Sincerely hope somebody takeover and continue...

Regards

 

[Cubt]

Since NR7 setup is giving many false signals, one more filter we can add to increase the success ratio is to use the opening range.

Check for the NR7 list. Next day check the Open Price,

if Open = High and if the price breaks the NR7 Low, then go short. -
if Open = Low and if the price breaks the NR7 High, then go Long.
Stop loss can be kept as Open price instead of NR7 High/Low.

if the above condition is not met, do not take that trade.
This setup would increase the success ratio to 80%. I have tested it for many stocks for one year period, it worked well.

 

[krishan prakash saxena]

Since NR7 setup is giving many false signals, one more filter we can add to increase the success ratio is to use the opening range.

Check for the NR7 list. Next day check the Open Price,

if Open = High and if the price breaks the NR7 Low, then go short. -
if Open = Low and if the price breaks the NR7 High, then go Long.
Stop loss can be kept as Open price instead of NR7 High/Low.

if the above condition is not met, do not take that trade.
This setup would increase the success ratio to 80%. I have tested it for many stocks for one year period, it worked well.

Will you please provide one example of open=high and open = low? It will be highly helpful to us. What is the filter if open is between high and low?

 

[Cubt]

Will you please provide one example of open=high and open = low? It will be highly helpful to us. What is the filter if open is between high and low?

on 14th Novemebr, Tech Mahindra had NR7 day. Next day, we check the Open, High and Low price, here we could see the Open = Low. Which indicates a bullish movement, we wait for NR7 High to break, once the stock crosses 1694, it went up to 1740.

Check the below example for going Short

on 1st April 2013, Tech Mahindra had NR7 day. Next day, we check the Open, High and Low price, here we could see the Open = High. Which indicates a Bearsih movement, we wait for NR7 Low to break, once the stock crosses 1052, it went down to 1019.

If Open is between high & low, skip that trade/stock

 

[Cubt]

Please find below the backtest report for TATA STEEL from 2006 to 2014.

The success ratio is comparatively high when you include this additional filter, in fact just plain NR7 setup failed in long run resulting in negative returns for the period of 2006 to 2014.

However, only 50 trades were executed with additional filter which not only increased the winning %, also the total points gained in 155 with 72% success rate.