Friday, January 12, 2007

NR7 in Action -, Inc. (Public, NASDAQ:BIDU)

Intraday NR7 bars are easier to spot on the longer timeframes such as 30 and 60 minutes. Here is a great example. BIDU opens strong and succumbs to market weakness at the 10:00 reversal. After a 5 point swoon, it starts to consolidate in a narrow range below its 10 and 20 period MAs. During lunch, it carves out an NR7 bar (narrowest range bar) on extremely low volume - price and volume contraction. Throughout the consolidation, BIDU was not able to close above the MA. After lunch price and volume expanded resulting in a 6 point move to the downside on increasing volume.

For more info on NR7, read the links in last night's post.

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