RSTI showed up on the TI pre-market scan - very active just ahead of the open on this wide gap. I almost gave up on this one after the wide 5th bar, but then I noticed 2 NRIBs and a nice NR setup taking shape on the 5 minute time frame below.If it wasn't for the FED, I could have stayed in this one all the way back down to the ORL, but my rules don't permit any open trades when the statement is issued.
FWLT, from the WL - continued weakness from yesterday. 3 IBs below yesterday's lower range sets up the entry.
SOHU, from the WL gapped down and set up 2 IBs just below yesterday's trading range. My sell stop didn't trigger and I forgot about it until I heard the beep as the trade executed much later. By the time I got to it, it was well in the money.
6 comments:
Im guessing from the blue lines that you originally had your stop at $40.55 but since your sell-stop was not hit yet, you moved it down after the hanging man. Is this correct?
7/15 is a NR7 isn't it?
Just realized my QT NR7 indicator was actually NR8. Glad you posted this today :)
This leads me to a question I was wondering. What is the significance of the number 7? Why not NR4 or NR11 etc? I've searched around for this, but there does not seem to be much information on this topic. Thanks.
RZ,
Correct, I don't want to stay in the trade if the hanging man doesn't stick.
Anon,
7/15 is NR7. I've read some NR theory on NR4 and NR7, but nothing on NR8. ;)
I'm not sure that the important aspect of NR7 is not specifically 7, it's the combination of price and volume contraction, prior to expansion. In the first chart, we see that NR4 also resulted in expansion, but it didn't last long.
I noticed in RSTI that the 2NRIB's are at the upper range of the OB, yet you want to short.
I would think that you would generally want the NRIB's to line up toward the upper range of the OB for longs. Vice versa for shorts. But this RSTI example is the exact opposite.
Do you find it matters where the NRIB's line up in relation to the OB?
rz,
That's exactly right. The only thing that kept me interested in the possibility of a short was the 5 min. time frame and the fact that it had sold off with a vengeance in pre-market.
NRBs should be positioned in the direction of the trade ie. upper range for longs and vice versa
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