Day trading setup - Stocks screened based on ID & NR7 Strategy for 7 & 9 Jan 2012

Day trading setup - Stocks futures screened based on Inside Day and Narrow Range Seven (NR7) Strategy for tomorrow 7-1-2012


  1. Sir,

    what stop loss should i place if i trade based on NR7 & ID...

    For Eg. if i trade in hotelleela...
    HIGH : 32.20
    lOW : 31.75

    suppose I place buying order at 32.35 or sell order at 31.6

    What stoploss i should place if either one of
    gets triggered.....

  2. @dare

    Hi, well HOTELEELA is very illiquid I will not trade it for intraday or swing trading. Only 14 contracts traded for the day! That is the story with most stocks in FNO. How ever they are tradable in cash market. But that is not the case with HOTELEELA.

    Coming to your question...
    You are trading the breakout, so stops might appear a little wide
    I am checking cash market chart of the stock.
    I assume you want to trade after a breakout of previous day's range (correct me if I am wrong)

    Stop for longs = 31.65 assuming long at 32.30 cash market

    Stop for shorts = 32.15 assuming short at 31.50 cash market

    Don't take away much from above levels, just don't trade this one. And I change my stops based on intraday price structure. But this will be the plan going into tomorrow's morning trade.

    By the way, why did you choose HOTELEELA out of all these?
    All the best :)

  3. @ r m
    Oh...first "good morning" greeting of 2012, I thought it was your new year resolution, to stop saying good morning! :D

  4. @AJ

    New year resolution is "Aaj kare so Kal kar, kal kare so parson"!

    Let 2012 be the year of Laziness. :)

  5. @r m :D
    yes I agree, after all the world is going to end in 2012, what is the use of working hard, just enjoy. To repeat what you said before, "Udhaar lo aur Ghee piyo" :))

  6. Hi AJ, i dont understand your NR4, NR7 method will u give some brief or defination for it. I also doing work in candlestick chart without any indicator just chart only. plz reply

  7. @Nilesh
    Hi, NR7 stands for narrow range seven i.e today is the smallest daily range of a stock as compared to previous seven days including today.

    The setup is based on the assumption that after a range contraction there is usually a range expansion phase.

    This is a breakout setup. As the range is "narrow" or small relative to stock's daily range, this breakout setup has better risk reward ratio.

    You can get all the details from Toby Crabel's book , Day Trading With Short Term Price Patterns and Opening Range Breakout.


  8. Thanks AJ for given details....any special files or article at here at blog available for it?? how you use elliot calculator and theory for short term plz tell me..overall something different i see here from other analyst including me also. thnkx and goodluck

    1. Nilesh, for NR7, the screener is available under "downloads trading tools" section under "Important Posts" on the left menu, that can be used to find NR7 for stocks, that you want to track. You can use "Blog Search" to find any post you like. I haven't written many, most of the posts are daily updates, not much useful.

      Elliott wave calculator has only popular retracements and projections built into it, a more indepth study is required to master it. I don't use Elliott wave principle much, as it is "predictive" in nature, I am a trend follower, tracking moving averages and price is what I focus on.

      Thanks :)

  9. Dear AJ plz details of any specific example you studid for NR (Case Study) its better for me if possible thankx

    1. I don't have specific examples here as post, see it is just a setup, trading it profitably depends on your intraday or swing trading system. Instead of focusing on one stock or index its better to trade a different stock on "same' setup :)