NR7 Indicator Based on Thomas Bulkowski's TheoriesThis NR7 indicator was built on the concept by Thomas Bulkowski and his ThePatternSite. NR7 is based on high to low price range (true range) that is the smallest of the prior 6 days (7 days total), when one NR7 shows, it means that today's candle body (low to high) is the narrowest of the past 7 days. Then if the current close is higher than the NR7's high, we call it a bullish breakout; and if the current close is lower than the NR7's low, we call it a bearish breakout. Regardless the direction, once the current close price goes above or below the high or low of the NR7 candle, we call it a "breakout" in this strategy. Bulkowski suggested on his website that only gave 7 calendar days (NOT trading days) for the symbol to breakout after NR7 occurs, and if the underlying asset does not breakout within 7 calendar days after one NR7 occurs, we would abandon this NR7 signal and start recounting again.
Since most securities/indexes do not trade on the weekends and have no data available, I switched 7 calendar days breakout limit to 5 trading days breakout limit, which will work on most assets. However, if you are trading cryptocurrencies or forex which have data on the weekends, feel free to add 2 more days to finish the NR7 count, all you have to do is to add "Buy6", "Buy7", "Sell6" and "Sell7" under line 11 and line 17, then add the senarioes under those "if" statements.
Every "NR7" will show up on the chart with a cross symbol and text next to it, then green arrowups show bullish signals and red arrowdowns show bearish signals. Bulkowski also added a "CPI" index on his NR7 strategy, this indicator does not include that "CPI equation" for simplicity purposes and other time frame tradings other than just weekly signals. Please like and share this script, let me know if any questions, thanks!
Nr7id
Narrow Range + Inside Day, Short Only Strategy (by ChartArt)This short only strategy determines when there is both a NR7 (narrow range 7, a trading day in which the range is narrower than any of the previous six days), plus a inside day (high of the current day is lower than the high of the previous day and the low of the current day is higher than the low of the previous day) both on the same trading day and enters a short trade when the close is lower than the open and the slope of the simple moving average is downwards, too.
The strategy closes the short trade next time the daily close is lower than the open in any of the next trading days. In addition the NR7ID can be colored (the color is red when the close is lower that day than the open, else the color is green) and the SMA can be drawn with a color based on the direction of the SMA slope. To fine-tune the strategy it is highly recommended to change the period length of the SMA, which determines if the measured SMA slope is downwards or not. In this version 1.1 I made a small change to long only version. By default only the bearish NR7ID days are colored.
Inspiration:
How to trade NR7 and Inside Day Pattern
paststat.com
Code credit:
NR7 indicator script from Tradingview user Lazybear:
pastebin.com
P.S. You can find the 'long only' version of this trading strategy here:
Narrow Range + Inside Day, Long Only Strategy (by ChartArt)This long only strategy determines when there is both a NR7 (narrow range 7, a trading day in which the range is narrower than any of the previous six days), plus a inside day (high of the current day is lower than the high of the previous day and the low of the current day is higher than the low of the previous day) both on the same trading day and enters a long trade when the close is larger than the open and the slope of the simple moving average is upwards, too.
The strategy closes the long trade next time the daily close is larger than the open in any of the next trading days. In addition the NR7ID can be colored (the color is green when the close is larger that day than the open, else the color is red) and the SMA can be drawn with a color based on the direction of the SMA slope. To fine-tune the strategy it is highly recommended to change the period length of the SMA, which determines if the measured SMA slope is upwards or not.
Inspiration:
How to trade NR7 and Inside Day Pattern
paststat.com
Code credit:
NR7 indicator script from Tradingview user Lazybear:
pastebin.com
