Trading NR7 setup

[ag_fx]

This is Vishwanath
I dont know how to use NR7 Setup.
kindly guide me.

Take the pains to read the thread first.There is no free lunch!

 

[rohangawale]

This is Vishwanath
I dont know how to use NR7 Setup.
kindly guide me.

If you go to 1st few posts of the thread you will come to know what is NR7 setup and further digging thru the thread you will get an idea abt how to use NR7 setup

 

[MurAtt]

Just to keep it as simple apart from the complexity of xNR4y, xNR7y, then xIDNRy etc -- let us assume the higher one and skip the lower i.e.

1st day NR4, 2nd is NR7, then we assume NR7 coz that is more contraction.​

Hope I am on the right path of keeping things much simple.

AW10 and others, your feedback too on this is requested.

Thanks

 

[AW10]

Hi Murtaza Bahi and AW10,

I have made the AFL to show multi NRx and IDNRX etc. I have a small doubt:

As you know, NR7 is also NR4, therefore, a NR4 and NR7 adjacent to each other (the order is no important) will make a 2NR4 and a simple NR7. similar is the case with combinations of IDNRx, ID etc. In such situations whether they should be considered as multiple NRx? Or should we take each category separately? What I mean is a 2NR4 is only when two NR4 are together and not a NR7 and NR4. Similarly, IDNR7 together with NR7 is NOT multi NR7, a IDNRx with ID is not multi ID etc.

If we label the bars with xNRy etc it will be too cluttered. The bars will continue to show the number 4, 7 etc even for multi NR set up. But in Title it can be shown as xNRy or xIDNRy or xID etc. In Exploration table no problem. We can have separate columns for single NRx and multi NRx.

Just waiting for your feed back.

-Anant

Anant,
As far as i can visualise it,
- You can have NRx signal. Just take the max value for x, eg. if it is NR4 or NR7, Show only NR7.
- Then chk for ID . If ID then prefix prev signal with ID else no prefix.
- Then chk for multiple occurance. 2NR4, 2 NR7 etc. Not sure if you can display 2nd signal/text for the same bar. It might be easier to show it as seperate text from the previous one.

IMO, the first text is for just 1 bar tag. In 2nd case, you are considering the tag or prev bar and current bar.
What stops you from extending it to 3 NR4.. Hence maybe, it will be better to take that as 2 different signal.

Hope this helps.

 

[itprodeepak]

Congrats for catching the breakout.
Can u post your stopless level (not mental but a level that u would have exited) ? When u bought it at 826, where did you put the stop ?

If you had not thought about stops, then my suggestion will be to take care of this in futures. Breakout trading has low rate of success and if it not traded correctly, then next breakout trade might take back this profit from you.

So you need to focus on loss side as well and have a strategy where you limit the amount that u give back to market.

Happy Breakout trading.

I put the SL @ 819 1% below my Purchase price and i targeted 1% for Half and 2% for balance shares.

Exited half @ 834.5 and balance @ 840.... I always try to keep Risk Reward Ratio to 1:2....

 

[asnavale]

Hi Murtaza and AW10.

See the chart below and give your comments. The actual chart portion does not differ from the earlier image posted. But in the title at the top, the label xNRy (or XIDNRy etc. as the case may be) is displayed. I think this is what you wanted. I have posted the AFL Code also. Those who have AmiBroker can run it on their charts and experiment with it. If any errors are there please report. After that I will add Exploration code also so that a report can be generated.

Murtaza Bhai, in the chart below You can see the cursor (vertical line) parked on a 4NR7 bar. Is it 'Sone pe Suhaga' or better than that?

One observation I made when testing this AFL on several charts: I could not find a Inside Day bar immediately following a NRx Bar whereas the reverse is seen in many places. I feel an Inside Day following a NRx is either not possible or it is extremely rare. I am bringing this to your notice because it may be of use to you in interpreting the charts.

The Chart is attached here:

The AFL Code is here:

/**********************************************


R = H - L;
NR7 = False;
NR4 = False;
m7 = m4 = idm7 = idm4 = idm = 0;

for(i = 7; i < BarCount; i++)
{
if( R < R[i - 1] AND R < R[i -2] AND R < R[i - 3] AND R < R[i - 4] AND R < R[i - 5] AND R < R[i - 6])
{
NR7 = True;
m7 = 1;
}
}

for(i = 4; i < BarCount; i++)
{
if((R < R[i - 1] AND R < R[i -2] AND R < R[i - 3] ) AND NOT NR7)
{
NR4 = True;
m4 = 1;
}
}
IDNR7 = Inside() * NR7;
IDNR4 = Inside() * NR4;
ID = Inside();
idm7 = IIf(IDNR7, 1, 0);
idm4 = IIf(IDNR4, 1, 0);
idm = IIf(id, 1, 0);

for(i = 1; i < BarCount; i++)
{
if(IDNR7 == IDNR7[i - 1]) idm7 = idm7 + idm7[i - 1];
if(IDNR4 == IDNR4[i - 1]) idm4 = idm4 + idm4[i - 1];
if(NR7 == NR7[i - 1]) m7 = m7 + m7[i - 1];
if(NR4 == NR4[i - 1]) m4 = m4 + m4[i - 1];
if(ID == ID[i - 1]) idm = idm + idm[i - 1];
}

MarkerIDNR7 = MarkerIDNR4 = shapeStar ;

Marker7 = shapeDigit7;
NR7Color = colorBrightGreen;

Marker4 = shapeDigit4;
NR4Color = colorLightOrange;

MarkerID = shapeHollowCircle;
IDColor = colorYellow;

IDNR7Color = colorBrightGreen;
IDNR4Color = colorLightOrange;

MarkerDist = L * 0.995;
IDNRDist = H * 1.03;

_N(Title = StrFormat("{{NAME}}, {{DATE}} ({{INTERVAL}}): {{VALUES}}") + ", Range=" + Prec(R + 0.00001, 2) + ","
+ WriteIf(IDNR7, EncodeColor(colorBrightGreen) + WriteIf(idm7 > 1, StrLeft(NumToStr(idm7), 4), "") + " IDNR7 ", "")
+ WriteIf(IDNR4, EncodeColor(colorLightOrange) + WriteIf(idm4 > 1, StrLeft(NumToStr(idm4), 4), "") + " IDNR4 ", "")
+ WriteIf(NR7 AND NOT ID, EncodeColor(colorBrightGreen) + WriteIf(m7 > 1, StrLeft(NumToStr(m7), 4), "") + " NR7 ", "")
+ WriteIf(NR4 AND NOT ID, EncodeColor(colorLightOrange) + WriteIf(m4 > 1, StrLeft(NumToStr(m4), 4), "") + " NR4 ", "")
+ WriteIf(ID AND NOT NR7 AND NOT NR4, EncodeColor(colorTurquoise) + WriteIf(idm > 1, StrLeft(NumToStr(idm), 4), "") + " Inside Day ", ""));

PlotOHLC(O, H, L, C, "Close", colorLightGrey, styleBar);
PlotShapes(IIf(IDNR7, MarkerIDNR7, shapeNone), IDNR7Color, 0, IDNRDist);
PlotShapes(IIf(IDNR4 AND NOT IDNR7, MarkerIDNR4, shapeNone), IDNR4Color, 0, IDNRDist);
PlotShapes(IIf(NR7 AND NOT ID, Marker7, shapeNone), NR7Color, 0, MarkerDist);
PlotShapes(IIf(NR4 AND NOT NR7 AND NOT ID, Marker4, shapeNone), NR4Color, 0, MarkerDist);
PlotShapes(IIf(ID AND NOT NR7 AND NOT NR4, MarkerID, shapeNone), IDColor, 0, IDNRDist);

********************************************************/

Waiting for your feedback

Regards

-Anant

 

[AW10]

Thanks a lot Anant for this AFL. It looks good to me.

Just a comment regarding 4 NR7 that u have found.. I had never seen more then 3 NR7.. cause I don't go below CNX100 level stocks.

For a stock priced <10 rs. (as per Y axix on right side), better to stay from applying any TA to them. In this chart, my visual backtest of NR4/NR7 signal gives me a feeling that most of the signals are trapped and reversed in next 1 or 2 days. Scrip is closing at circuit for 4 days.. that means it doesn't have enough liquidity. So even if u catch the breakout, it will be difficult to get out from them.

There are people who trade such scrip, but not my cup of tea.. so I will prefer to stay away from them.. and use TA concepts in other liquid counters.

Happy Trading

 

[asnavale]

Thanks a lot Anant for this AFL. It looks good to me.

Just a comment regarding 4 NR7 that u have found.. I had never seen more then 3 NR7.. cause I don't go below CNX100 level stocks.

For a stock priced <10 rs. (as per Y axix on right side), better to stay from applying any TA to them. In this chart, my visual backtest of NR4/NR7 signal gives me a feeling that most of the signals are trapped and reversed in next 1 or 2 days. Scrip is closing at circuit for 4 days.. that means it doesn't have enough liquidity. So even if u catch the breakout, it will be difficult to get out from them.

There are people who trade such scrip, but not my cup of tea.. so I will prefer to stay away from them.. and use TA concepts in other liquid counters.

Happy Trading

Hi AW10,

I was just showing the chart where 4NR7 was found. You can see the date, it was in Jan 2007. I know such stocks do not work well with any type of TA. What I have seen is the stocks which go frequently into circuit are not to be subjected to TA. It is more like gambling. I have once burnt my fingers with such a stock but later understood how to play such stocks and I could recover more than I lost. But I have stopped going near them.

In the AFL, I have put the condition that the range has to be less than any other previous range. By this a circuit hitting stoch would give a NR only on the first day of circuit. On subsequent circuits it will not qualify as NR. If we change the condition to "less than or equal to previous ranges" then we will have numerous xNRy bars because such stocks would be hitting circuit for several days continuously and each circuit day counts as NR. Therefore I made it rigid that the condition is "only Less Than" will count for NR.

By the way what is your observation regarding a Inside Day following an NR day. I could not find any ID immediately following NR but many cases of NR coming immediately after ID are available.

Let us wait for a day or two for any feed back from others who would be using the AFL. Then I will post the AFL with exploration and reporting facility.

Regards

-Anant

 

[rohangawale]

NR7 Stocks Triggered on 1 Oct:

STOCK		HIGH		LOW
NIFTY		5,110.50	5,057.05
REL CAPITAL	923.45		906.15
SAIL		170.9		168.1
SUZLON		92.95		91.1

Close of NR7 Stocks on 5th Oct:

		[B]1-Oct			5-Oct	
STOCK		HIGH	LOW		Close	Trigger[/B]
NIFTY		5,110.5 5,057.05	5003.20	Down Break
REL CAPITAL	923.45	906.15		896.60	Down Break
SAIL		170.9	168.1		162.15	Down Break
SUZLON		92.95	91.1		87.10	Down Break

 

[rohangawale]

NR7 Stocks triggered on 5th Oct:

[B]STOCK		HIGH		LOW[/B]
HDFC BANK	1645		1617
NTPC		209.9		207
POWER GRID	109.55		108.15
WIPRO		616		600