Trading NR7 setup

[rkkarnani]

Stocks forming NR7 Candle on 24th November 2009 with Hi and Lo:

DLF 380 and 368.60
IDEA CELLULAR 49 and 49.75 (Too narrow a range)
PUNJAB NATIONAL BANK 926.75 and 911
SUN PHARMACEUTIC 1479.80 and 1447
WIPRO LTD 654.85 and 643

 

[krishan prakash saxena]

Thanks a lot

 

[rkkarnani]

AW, I noticed while Exploring for the stocks that have made BR7 on a day, that a few also make a NR7 or higher on a Weekly Time frame. What significance can we draw from this?
Of the Stocks making NR7 bars on 24th :These stock made NR bars in the week ending 20th November:
PNB made a NR4 bar on weekly : 934.70 and 877.15
Wipro made a NR4 bar :659 and 626.40
DLF , NR7 : 388.90 and 356.10 (Even the previous week was NR4)
Idea Cellular NR7 : 52.30 and 49.40
Your views on the matter is requested with perspective to use the info as an assistance in Trading as per this set up.

 

[vicky_ag]

RK,

I have also been looking into how to trade NR7 on a positional basis in Nifty only (be it futures or options). One thing, I notice is NR7 might not be a reversal from the current trend.

To further elaborate, if we are in a uptrend and NR7 forms. And, on the next day there is a down ward break. It doesnt necessarily mean a reversal on the uptrend but rather might be one of those short term down trends before the uptrend continues . This wave can be a long one or might be over in a day or two.

Great!! Thanks for sharing your strategy. Raj, can you also let us know whether you use any 'filter" to long or short on the NR7 levels. I presume you enter the trade very next day. I have tried to analyse the strategy on paper with 3 years data, taking all NR7 bars as valid triggers but still not been able to finalise the rules. I was looking at following :
01. I Buy a call and a put at 3.28 on the day the NR7 bar is formed. Exit one of them on trigger.
02. I Buy a call or a put only when NR level on any side is triggered.
03. Enter Nifty Futures Long or Short on NR7 level trigger.
04. What should be the filter.
(Say we have a NR bar with 4998 as low and 5052 as high, what would be your level to go long or short the next day!!)
05. Reverse on breach of the NR7 reverse level. Again what filter to be used.
06. Any exit level.
07. Any reentry strategy.
08. Any use of range expansion bars?
Do elaborate a bit more on your strategy. Thanks.

- R K Karnani

 

[Karanm]

Stocks forming NR7 Candle on 24th November 2009 with Hi and Lo:

DLF 380 and 368.60
IDEA CELLULAR 49 and 49.75 (Too narrow a range)
PUNJAB NATIONAL BANK 926.75 and 911
SUN PHARMACEUTIC 1479.80 and 1447
WIPRO LTD 654.85 and 643

Sir, what is the Success Ratio and Risk/Reward Ratio of NR7 & Statergy.

 

[rkkarnani]

Sir, what is the Success Ratio and Risk/Reward Ratio of NR7 & Statergy.

Karnm, We still dont have a strategy inplace to trade the set up! AW has posted his views early in the thread. I have not back tested it. Just eye balling the chart do raise a hope that any strategy based on this system or in conjunction with any other system should prove profitable!!

 

[krishan prakash saxena]

No NR - 7 stocks for last two days

 

[VJAY]

No NR - 7 stocks for last two days

Here it is......

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[krishan prakash saxena]

Thanks Mr.Vijay.
Today there were so many downs and slight ups, Nr-7 stocks availabilty is doubtful. Is there any such stock?

 

[rkkarnani]

Thanks Mr.Vijay.
Today there were so many downs and slight ups, Nr-7 stocks availabilty is doubtful. Is there any such stock?

Please accept it as a suggestion and advise and not criticism!! On this thread friends have provided us with Excel shhet and some indicators too to find out NR7 stocks!!! Why remain dependant on others for the list of NR7 stocks!!

Data is available, I am told from NSE, all you need to do it to feed in the daily Hi and lo to get NR 7 list!!!

So give it a try, it will boost your confidence too!!

Happy trading!!