Dear AW10, and Bunny i was visualy going thru NR7 days from jan 08 to june 19 th 09 and NR7 days according to sunils data .......
As bunny said we may be traped etc even i have marked after nr7 break out in direction of trend and imidiately after 1/2 days trend reverses so what i want to do is trade 3/4 trade after NR7 day in 60 min time frame using 60 minute visual pivots found all most all NR7 days gives profit after we have range expansion .........
So i think we got the messege that market undecided and will eventualy come out from this phase so we keep on trading in lower time frame ( i prefer 60 minute) untill we have range expansion and we will be in profit so we should not worry about single trade etc
Will post chart after market waht i wanted to say
Thanks Bunny for raising few points to discuss and Satya for sharing your observation.
My view as per price action, breakouts are often followed by retracement and test of the breakout level. Depending on demand/supply equation before and a- the-time of breakout, the retracement might test the breakout level or might reverse before this level. The way we trade the breakout is very different from the way we will trade retracement. In my view - breakout trading is a quickie. Get in at right time and exit after instant gratification (or punishment) in next 1 or 2 bars. Retracement trades are more of extended pleasure of riding the trend.
So it depends on our requirement and how we want to trade this setup. Based on that the trading rules will change. If we confuse and try to trade a breakout entry as trend following entry then chances are high that we will be stopped out or will end up carrying the pain when retracement is in progress.
A daytrader, may try to encash on breakout move that is coming from widebars in next days, whereas a swing trader might wait for retracement.
An option trader might like to sell jump in premium that results from euphoria of breakout (which quickly dies down) and create the long position when it retraces and starts going up.
Another option trade that I had mentioned in which trader is already long using straddle/strangle before the breakout in last 15 mins of NR7 day, may decide to book quick profit on winning leg or adjust it by selling higher strike option and lock-in the gain.
And wait for retracement to exit the loosing leg of straddle/strangle.
( I can think of many such scenarios to trade this setup depending on various trading requirements).
Happy Trading