Classic Geometric Patterns and Narrow Range Setups
- Thread starter inandlong
- Start date
inandlong
Have just gone through this tread and understand that you are looking for the NR7 / IB and then take a trade on whatever side it breaks out.
Where I am getting confused is that you mentioned that you use the H/L of the NR7/IB and have a stop 7 ~ 10 cents above/below that.
Later you mention that you are waiting for the close of the next day before entering (and watch volume).
What if this day after the NR7/IB is a wide range day like SUPG on 5 Nov 2003 when it had a wide range day that was over 10%? Do you still get in on the close of the 6th / morning of the 7th?
Many thanks
Have just gone through this tread and understand that you are looking for the NR7 / IB and then take a trade on whatever side it breaks out.
Where I am getting confused is that you mentioned that you use the H/L of the NR7/IB and have a stop 7 ~ 10 cents above/below that.
Later you mention that you are waiting for the close of the next day before entering (and watch volume).
What if this day after the NR7/IB is a wide range day like SUPG on 5 Nov 2003 when it had a wide range day that was over 10%? Do you still get in on the close of the 6th / morning of the 7th?
Many thanks
BhuddaTop
I use QuotesPro and they have a scanner with their EOD datafeed.
I use QuotesPro and they have a scanner with their EOD datafeed.
Hi bali, sorry for the delay.
That's my bad for combining two different trading patterns and not being more clear. I like to enter geometric pattern breaks at the close of the day if they had good volume. The Hershey method made me realize there might be room for entering intraday using prorata volume. However, I have seen enough 9:30-10:30 positive prorata signals fail to recognize that it might not be a good idea.... for geometric pattern breaks. I think dgabriel enters intraday, you might follow his journal regarding this.
But specifically to your question, the NRID break is, for me, a 7 cent stop, 10 cent limit intraday entry as you described. I consider it a daytrade, so I would not use an EOD entry.
Again, I apologize for the confusion.
inandlong
Many thanks for your reply.
Toby Crabel does mention on gaps: if the day after the gap has opened at one end of the bar and closed on the other and the bar is in the direction of the trend.
Then if the volume is good enter at the close as there likely will be a continuation.
I was just wondering if you had found an improvement on his NR7 / IB and if / or I had missed something.
Am I correct in understanding that you do not worry about the direction of the breakout? Robert Miner in his Dynamic Trader course actually advocates to take it only in the direction of the trend....
Many thanks for your reply.
Toby Crabel does mention on gaps: if the day after the gap has opened at one end of the bar and closed on the other and the bar is in the direction of the trend.
Then if the volume is good enter at the close as there likely will be a continuation.
I was just wondering if you had found an improvement on his NR7 / IB and if / or I had missed something.
Am I correct in understanding that you do not worry about the direction of the breakout? Robert Miner in his Dynamic Trader course actually advocates to take it only in the direction of the trend....
I think this trade is supposed to be a 1-4 day swing trade, although I am not sure. I know Connors describes it as such, and references that I have seen elsewhere suggest the same.
However, out of pure laziness, I have never followed the outcome beyond one day, nor have I qualified the trade in any way. So I really can't speak from experience about trading with the trend with this setup.
I should rephrase that statement about not qualifying the selections by saying that the stocks that are filtered come from those that are between 10-70 and have a 65 day avg vol of 400,000 or greater. Those are just personal preferences.
However, out of pure laziness, I have never followed the outcome beyond one day, nor have I qualified the trade in any way. So I really can't speak from experience about trading with the trend with this setup.
I should rephrase that statement about not qualifying the selections by saying that the stocks that are filtered come from those that are between 10-70 and have a 65 day avg vol of 400,000 or greater. Those are just personal preferences.
Do u draw trendlines alongside the NR days and idealy try to have a triangle compression.
Just curious as to what you look for exactly in NR setup.
--MIKE
Just curious as to what you look for exactly in NR setup.
--MIKE