One of the generally accepted views about the market is that
markets move from period of range contraction to period of range expansion and
vice versa.Or period of high volatility are preceded by period of low
volatility.Many indicators and setups like Bollinger bands ,Average true range
(ATR) etc are based on this premise.Narrow Range 7 or NR7 as it is commonly
known is one such setup.
I am uploading Narrow Range 7 (NR7) setup calculator.You can
download it from here.
The calculator will help you in finding right stocks at
right time which may experience rise in volatility soon (mostly it's the next
day).In other words you will move a little closer to "timing the
markets",which is often said to be an impossible thing
How to use the calculator?
It's very simple all you need to do is copy the data in grey
cells.You need to copy the date ,high and low prices on end of the day
(EOD) basis.Just be careful when you copy the high and low data for the
day,quite often due to "freak quotes" you get inappropriate opening
values (happens mostly with illiquid stocks).So I would say ignore a few
initial ticks if that is cumbersome ignore the first minute data.
That's all about the calculator.Personally I strongly
believe that markets indeed move from low volatility to high volatility
period.I made this calculator a long time ago but never worked on this idea in
detail.I will study this in detail and will come up with other forms of
calculators based on this.Shortly I will write a post on who can benefit from
this and some related trading strategies
Good luck with your trading.
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Good Morning Anuj. :)
ReplyDeletehi r m
ReplyDeletegood morning...hope you had a nice weekend