Trading NR7 setup

[Sunil]

If today's High & Low of Nifty future is maintained, then we will be having an NR4 + Inside Day today.

And if close is around this pivotal zone of 4570, then a DOJI -2 in Spot's EOD chart.

Hoping for a "GIRAFFE" day tomorrow!!!

 

[MurAtt]

Hoping for a "GIRAFFE" day tomorrow!!!

Oh yes ... A Giraffe true

BUT

Drinking Water or Eating Leaves

:rofl:

 

[AW10]

Technically its not NR7 day as yest range was 68 pts and todays range is 71 pts.

AW Sir can we still call it as 3NR7??

Rohan, If you go by the rules.. then certainly it is not NR7 day.. Rather it is WS2 (wide spread of last 2 days) day..

But if you apply the common sense, then 71 point daily range is still very tight range compared to Typical average daily range of 105 points.. i.e. we are 30% contracted then normal.
I prefer to apply common sense.. rather then blindly following the rules without questioning them....

Happy Trading.

 

[AW10]

Plz chk out my following post in "beginners-way-trade-options" thread". In that I have mentioned about how I am trading this scenario with options.
In short - I bought 4500-4600 strange for july and august. Made some adjustment to July position to protect against the time decay and reducing the risk.
And getting ready for the next action..

http://www.traderji.com/options/28384-beginners-way-trade-options-12.html#post342479

Happy Trading.

 

[kenneth]

AW10

As you stated out of the 50 NR4 or NR7 days only 10 days have the volatality ratio of less than 0.5 in the last 320 trading days.

Regards
Ken

Ticker	Date/Time	Buy	Close	 VolRatio	NR4day	NR7day	insideday	BuyStop	,SellStop,	
S&P CNX Nifty	9/22/2008	0	4223.050	1.08	1.00	1.00	0.00	4303.38	4202.27	
S&P CNX Nifty	9/24/2008	0	4161.250	1.14	1.00	1.00	0.00	4208.08	4115.73	
S&P CNX Nifty	10/14/2008	0	3518.650	1.76	1.00	1.00	0.00	3648.38	3491.38	
S&P CNX Nifty	10/20/2008	0	3122.800	1.21	1.00	1.00	1.00	3238.52	3058.82	
S&P CNX Nifty	10/21/2008	0	3234.900	1.45	1.00	1.00	0.00	3254.98	3117.23	
S&P CNX Nifty	11/6/2008	0	2892.650	1.29	1.00	1.00	0.00	3007.93	2860.13	
S&P CNX Nifty	11/14/2008	0	2810.350	1.18	1.00	1.00	0.00	2938.93	2778.68	
S&P CNX Nifty	11/17/2008	0	2799.550	1.10	1.00	1.00	0.00	2835.82	2694.38	
S&P CNX Nifty	11/18/2008	0	2683.150	0.61	1.00	1.00	0.00	2802.57	2664.18	
S&P CNX Nifty	11/20/2008	0	2553.150	0.36	1.00	1.00	0.00	2634.32	2502.77	
S&P CNX Nifty	11/24/2008	0	2708.250	0.90	1.00	1.00	0.00	2740.48	2633.68	
S&P CNX Nifty	11/28/2008	0	2755.100	0.69	1.00	1.00	0.00	2779.13	2690.18	
S&P CNX Nifty	12/3/2008	0	2656.450	0.55	1.00	1.00	0.00	2693.77	2611.82	
S&P CNX Nifty	12/11/2008	0	2920.150	0.79	1.00	1.00	0.00	2945.43	2861.43	
S&P CNX Nifty	12/19/2008	0	3077.500	0.58	1.00	1.00	0.00	3106.93	3036.18	
S&P CNX Nifty	12/24/2008	0	2916.850	0.57	1.00	1.00	0.00	2968.13	2900.32	
S&P CNX Nifty	12/31/2008	0	2959.150	0.49	1.00	1.00	0.00	3002.77	2937.23	
S&P CNX Nifty	1/2/2009	0	3046.750	0.33	1.00	1.00	0.00	3079.98	3021.68	
S&P CNX Nifty	1/13/2009	0	2744.950	0.58	1.00	1.00	0.00	2802.73	2720.68	
S&P CNX Nifty	1/19/2009	0	2846.200	0.59	1.00	1.00	0.00	2868.32	2819.77	
S&P CNX Nifty	1/29/2009	0	2823.950	0.50	1.00	1.00	0.00	2873.98	2795.23	
S&P CNX Nifty	2/4/2009	0	2803.050	0.43	1.00	1.00	0.00	2842.32	2780.57	
S&P CNX Nifty	2/11/2009	0	2925.700	0.40	1.00	1.00	0.00	2937.63	2877.48	
S&P CNX Nifty	2/12/2009	0	2893.050	0.46	1.00	1.00	0.00	2939.13	2886.43	
S&P CNX Nifty	2/18/2009	0	2776.150	0.51	1.00	1.00	0.00	2806.63	2736.52	
S&P CNX Nifty	2/19/2009	0	2789.350	0.54	1.00	1.00	1.00	2802.27	2767.48	
S&P CNX Nifty	3/4/2009	0	2645.200	0.44	1.00	1.00	1.00	2655.82	2611.82	
S&P CNX Nifty	3/19/2009	0	2807.150	0.56	1.00	1.00	1.00	2822.38	2771.23	
S&P CNX Nifty	3/20/2009	1	2807.050	0.27	1.00	1.00	1.00	2816.23	2773.52	
S&P CNX Nifty	3/27/2009	0	3108.650	0.46	1.00	1.00	0.00	3123.48	3055.77	
S&P CNX Nifty	4/13/2009	0	3382.600	0.60	1.00	1.00	0.00	3417.93	3334.02	
S&P CNX Nifty	4/20/2009	0	3377.100	0.81	1.00	1.00	0.00	3441.23	3339.32	
S&P CNX Nifty	4/24/2009	0	3480.750	0.77	1.00	1.00	0.00	3491.48	3402.77	
S&P CNX Nifty	4/27/2009	0	3470.000	0.82	1.00	1.00	0.00	3517.38	3435.18	
S&P CNX Nifty	5/5/2009	0	3661.900	0.96	1.00	1.00	0.00	3682.32	3618.63	
S&P CNX Nifty	5/13/2009	0	3635.250	0.91	1.00	1.00	0.00	3709.73	3610.07	
S&P CNX Nifty	5/14/2009	0	3593.450	0.87	1.00	1.00	0.00	3632.02	3537.48	
S&P CNX Nifty	5/15/2009	0	3671.650	0.92	1.00	1.00	0.00	3686.38	3597.73	
S&P CNX Nifty	5/22/2009	0	4238.500	2.40	1.00	1.00	0.00	4249.63	4155.73	
S&P CNX Nifty	5/25/2009	0	4237.550	2.47	1.00	1.00	0.00	4270.17	4204.98	
S&P CNX Nifty	6/1/2009	0	4529.900	0.82	1.00	1.00	0.00	4545.52	4450.27	
S&P CNX Nifty	6/5/2009	0	4586.900	0.25	1.00	1.00	0.00	4636.98	4561.83	
S&P CNX Nifty	6/11/2009	0	4637.700	0.81	1.00	1.00	1.00	4679.67	4586.02	
S&P CNX Nifty	6/19/2009	0	4313.600	0.71	1.00	1.00	0.00	4326.33	4206.58	
S&P CNX Nifty	6/24/2009	0	4292.950	0.58	1.00	1.00	0.00	4307.13	4218.13	
S&P CNX Nifty	7/7/2009	0	4202.150	1.05	1.00	1.00	1.00	4231.92	4155.38	
S&P CNX Nifty	7/9/2009	0	4080.950	1.06	1.00	1.00	0.00	4115.02	4039.73	
S&P CNX Nifty	7/21/2009	0	4469.100	0.62	1.00	1.00	0.00	4524.13	4436.48	
S&P CNX Nifty	7/24/2009	0	4568.550	0.67	1.00	1.00	0.00	4578.88	4504.73	
S&P CNX Nifty	7/27/2009	0	4572.300	0.56	1.00	1.00	0.00	4596.88	4528.38

 

[MurAtt]

AW10

As you stated out of the 50 NR4 or NR7 days only 10 days have the volatality ratio of less than 0.5 in the last 320 trading days.

Regards
Ken

And what movement (b/o or b/d) differences are there between the less than 0.5 and the more than 0.5, like does one of them have more movements and always upwards bias etc --- get the drift of what I'm trying to say ...

 

[AW10]

AW10

As you stated out of the 50 NR4 or NR7 days only 10 days have the volatality ratio of less than 0.5 in the last 320 trading days.

Regards
Ken

Thanks Ken for this output. I have added my observations from the chart on those 10 cases where volatility ratio was less then 0.5.
It seems to work fine and catch clear breakout, except in 1 case, where we had Outside day after the breakout.

Only issue is the frequency of this setup. 10 times in last 1 yr.. means once a month on an average. And the complexity of calculations without a tool. But certainly gives better success rate then raw NR7 setup.

Thanks again.

Date/Time	Close	VolRatioNR4  NR7	Observation
11/20/2008	2553.15	0.36	1	1	Up brk. took it to 2844 in next 6 days
12/31/2008	2959.15	0.49	1	1	Up brk. took it to 3146 in next 4 days
01/02/2009	3046.75	0.33	1	1	Up brk. took it to 3146 in next 3 days
02/04/2009	2803.05	0.43	1	1	Up brk. took it to 2956 in next 4 days
02/11/2009	2925.7	0.4	1	1	Dn Brk. After false break. Went down to 2539 in next 14 days
02/12/2009	2893.05	0.46	1	1	Dn Brk. After false break. Went down to 2539 in next 14 days
03/04/2009	2645.2	0.44	1	1	Dn Brk. Went down to 2539 in next 2 days
3/20/2009	2807.05	0.27	1	1	Up brk. took it to 3143 in next 4 days
3/27/2009	3108.65	0.46	1	1	Dn Brk. Went down to 2965 in next 2 days
06/05/2009	4586.9	0.25	1	1	Dn Brk. Went down to 4365 in next 2 days. Bounced back eventually went to 3920 level till july

Happy Trading

 

[kenneth]

AW10 and SM

May be attached chart will give you a better picture

Regards
Ken

 

[AW10]

Ken, Appreciate the chart.
If you don't mind then can u plz filter your signals to test for HV <0.5 as well.
That way, the chart will be clearer.
I think currently it is marking all NR4/NR7 days.

Happy Trading

 

[AW10]

FTSE has broken the low of last 3 days today (Tue).. S&P has given downbreak after NR5 day on yesterday (Mon)..
Probably, tomorrow (Wednesday) will be the day for breakout for us too.. lets see..