Thursday, January 11, 2007

NR7 Defined

For those that are new to the blog. Here are two great posts on NR7 price/volume expansion.

Coiled Spring by Alan Farley

NR7 in Action by Trader Mike

3 comments:

Jamie said...

Check out Tom C's trade today on the Trader-X blog for a great example of an NR7 intraday trade.

Bubs said...

Thanks for the articles. One more question. Do you trade these narrow range bars on any stock or do you have other criteria like gaps or high volume stocks? Basically how do you find these NR7 bars

Jamie said...

They are very hard to find. I've tried to develop a scan but mostly I'm just coming up with inside days on declining volume.

At the moment, I'm eyeballing it on my list of usual suspects.

Hopefully I will be able to come up with something better when I have more time.

I generally like to trade this setup on a momo stock that has pulled back to the MA or a key support area on the daily timeframe.