Trading NR7 setup

[rkkarnani]

Dear Aw10 no i have not done much work on it wanted to bring this concept to 60 min flow as RK knows 60 min flow very well he can share some of his thoughts ........

Satya, I suggest to try 30 minutes chart instead of60 minutes. Trade it intraday. No other reason for 30 minutes except 'our market timing.
Whenever we try to look back the range in past 7 barsof 60 minutes each, we are sure to get a 5 minute and a 30 minute bar(9.55 to 10) and (3.00 to 3.30) The first 5 minute bar can be avoided by changing the startung time but cganging the closing time to omit the last 30 minutes bar shall leave out large chunk of price movement data .
I just eye balled the Nifty Futures 30 minutes chart from April 2008 and it seem to be reasonablly good to trade. We need to have some trading rules :
Just suggesting w/o looking back :

01. Use a 5 point filter rounded to nearest rupee +0.20 paise ,
02. Move SL to cost once the trade moves in our direction by X points.
03. Track also Range Expansion 7, i.e look out for a bar having highest range in last 7 bars, and if we are in trade, the Hi or Lo of this expansion bar can be used as Trailing SL
04. Book partial profits at certain levels.
05. Exit position at close.
06. Not sure what to do if we gat a NR7 on 3.30 bar?? Do we trade it the next day.??????

Shall try to post a chart soon!! Not very proficient in upload etc, and may take time.

Looking forward to inputs from all, not Satya alone to whom this mail is addressed.
All the best.
-R K Karnani

 

[rkkarnani]

The NR7 below the Price candle denotes a NR7 bar. RE7 above the bar denotes High range in last 7 bars.

We go long above the high of 1st bar on Sep 2009 : 4721.70+5=Long > 2727.20 Opp. we get is upto 4745. We either booked some profit or simply moved our SL to cost or simply reversed to short below the low of a new NR7 bar at 11.30 with low at 4732. Our reversal is almost at cost. We get opportunity till 4596 and exit either at predecided level or at close ~3.25
On 2nd Sep we short below 12.30 bar 4642 less filter and get an opportunity till 4603.
On 3rd : Long above 11 AM bar 4630 , opp. upto 4649, reversed to short below 12 noon bar 4632 and get opp. upto 4575
0n 4th Long above 2 PM high 4645and Opp 4712. (We should take last signal generated upto 2 PM only so that the trade gets some time to move)
On 5th we go long above 11.30 AM high and get the entire run till close.

 

[asnavale]

Anant, the output looks fine to me.
As you are showing 2 NR4 days by count of 2 in NR4 column..it is fine..
By definition, these days call called as NR5 day.. I guess to keep it simple and
without getting into too much of complexity, you output is fine.

So as long as NR4, or NR7 column has got any value, we got to pay attention to the scrip. If ID column also has value, then it is much better.

Thanks a lot for nice and perfect work. Highly appreciate it.

Happy Trading

Hi AW10,

Thanks for your appreciation. In addition to the number denoting the multiplicity of NR bar, the colors also will help in identifying the type of NR bar, like whether it is ID or NR4 or NR7 or IDNR etc.

Now I am posting the AFL here. This can plot as an indicator and can be used for Exploration/Scanning. Copy the code below (All the portion in Blue Color) and paste into Notepad or AMIBROKER AFL Editor. Save in Formulas/Custom Directory by giving a suitable name. I saved it as NR7.afl

Please inform if there are any errors or problems encountered.

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


_SECTION_BEGIN("NR7");

/*********** NR7 System for Chart and Exploration ***********************/

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;

if(Status("action") == actionIndicator)
{
_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);
}

if(Status("action") == actionExplore)
{
Filter = (m7 > 0) OR (m4 > 0) OR (idm > 0);

SetOption("NoDefaultColumns", True);

AddColumn(DateTime(), "DATE", formatDateTime, colorDefault, colorDefault, 96);
AddTextColumn(Name(), "SYMBOL", 77, colorDefault, colorDefault, 120);
AddColumn(R, "Range", 6.2, colorDefault, colorDefault, 84);
AddColumn(IIf(idm, 48 + idm, 32), "INSIDE", formatChar, colorYellow, IIf(idm, colorLightBlue, colorDefault));
AddColumn(IIf(m4, 48 + m4, 32), "NR4", formatChar, colorYellow, IIf(m4, colorBlue, colorDefault));
AddColumn(IIf(m7, 48 + m7, 32), "NR7", formatChar, colorYellow, IIf(m7, colorGreen, colorDefault));
}

/************************** END OF AFL CODE *****************************/

_SECTION_END();



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



-Anant

 

[AW10]

Thanks Anant, I have linked this post in the begining post of this thread where some other resoruces are also given.

Happy Trading

 

[Placebo]

Although i have just gone through the initial pages of this thread, the discussion seems to be spectacular. Great Initiative Aw10. Just a question mate. Any recommended reading which would help me come to terms or par with you fellows as far as NR is concerned ? ?


Cheers

 

[AW10]

Inangia, the originator of this cocept was Toby Crabel. So chk out his book (search on rapidshare with his name shd help here).
Later Linda Raschke extended this concept in her book Street Smart. So that shd also help you.

If you are looking at the experience/customisation of this concept for indian market, (I am not sure) then probably this thread is the only place u might find on the net.

I guess you are VSA trader, and of late, I am finding VSA interesting as it fits pretty well with my price action based trading. If I am not wrong, then NR bars are potential "No demand" Bars of VSA.
Looking forward for your contribution.

Happy Trading

 

[Placebo]

Thanks mate. I'm finding NR7 and 4 very interesting as this can be used as confirmation for VSA/Wyckoff Methods or maybe in conjunction. In the previous post you mentioned about trading using price action. There is a chap who goes by the name dbpheonix on TL forums perhaps you should pay a visit to his blog. He has written great articles on price action. And in the unlikely event if you want to skip the trouble, i have taken some of his best articles and put them in a pdf file.Here is the link if you wish to download

http://rapidshare.com/files/291032757/Price_Action.pdf


Cheers

 

[rohangawale]

NR7 Stocks triggered on 8th Oct:

[B]STOCK		HIGH		LOW[/B]
GRASIM		2500		2445
HDFC LTD	2758		2691
ICICI BANK	934.9		912.9
REL CAP		921.8		905.5
SBI		2134.6		2096.6

Close as on 9th Oct:

		[B]8-Oct			9-Oct	
STOCK		HIGH	LOW		Close	Trigger[/B]
GRASIM		2500	2445		2398.15	Down Break
HDFC LTD	2758	2691		2693.50	No Breakout
ICICI BANK	934.9	912.9		901.80	Down Break
REL CAP		921.8	905.5		908.30	No Breakout
SBI		2134.6	2096.6		2067.55	Down Break

 

[rohangawale]

NR7 Stocks Triggered on 9th Oct:

[B]STOCK		HIGH		LOW[/B]
BPCL		567.5		556.25
RIL		2131.6		2090
REL COMM	255.6		246.6
TATA COMM	478		470

 

[mfadhd]

Dear Asnavale,

I m not gettin the file u attached i.e exploration how can i get the scan done with the result as u have attached in ur previous page 71 i m not getin the result sheet pls help me how can i get it hope to hear soon

regards