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Meaning of NR7 pattern ! |
Pats
White Belt
Joined: 08 Sep 2013
Posts: 407
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Post: #1  Posted: Sat Sep 14, 2013 2:42 pm Post subject: Meaning of NR7 pattern ! |
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Hi,
For those newbees, who do not know NR4 or NR7 pattern, generally discussed in expert discusions, here is the explanation:
If one observe chart pattern for longer time-frame say- 1mnth to 1yr or more, we find some expansion and contraction periods or trading range.
From NSE/BSE find High and Low closing of last 7 days.
Find High and Low of each day.
Find curent day's and last 6 days closing range.
Now if current day's High and Low Range is smallest in all the 7 days, you may say current day is NR7 Day.
( Same funda applies for NR4 i.e last 3 days + current day. )
For more details, expert may enlighten, since many expect 16 Sept, 13 may be a NR7, NR10, NR21 etc.
Hope this helps to needy one !
By the way, can we expect a range bound market with a hanging man pattern on monday ? |
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voyager
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| Post: #2 Posted: Sat Sep 14, 2013 2:54 pm Post subject: |
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thanks a lot.  |
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voyager
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| Post: #3 Posted: Sat Sep 14, 2013 2:56 pm Post subject: |
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| thanks a lot. |
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Pats
White Belt
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| Post: #4 Posted: Sun Sep 15, 2013 8:13 am Post subject: |
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| voyager wrote: | | thanks a lot. |
Thanks!
ITC, the High Weightage Stock in Nifty, is at a juncture of Breakout or Breakdown, with a stiff resistance at 340 and a good support at 300. The rounding bootom from 340 - 300 - 340 is nicely completed. 14DEMA is trying to cross 20DEMA and RSI flat above/around 50 and Momentum though upward baised but flat now. 2-mnths back market manipulators were playing Nifty Gapup/Gapdn game with just a few HWStocks like ITC, Infy, TCS, HDFC etc.
Market is taking a breather due to 18-20 Sept events. Plus Option writers tend to play with Time Decay tactics after 15th onward of every mnth. I think, that's why many experts are predicting Range Bound market for the next few monhs, until the election results.
On a longer term (4-mnths TF), FII generally go long around Jully-Aug taking market upward, and book profits around Nov-Dec for a decent X-mas celebrations and a HNYear!
So, predictably, although the overall bias may be upward with some Hi-cupps dnward-upward-sideways depending upon global events and local events, but e'body tend to agree that Indian markets are the best opportunity to make money for better X-mas.
And for a sustainable rally most may agree that, one or two downward swings around 5730 - 5670 is most appropriate. Until then low-volume trades on either side sensing opportunities in time may be the best policy for all addicted traders in the market. What say?
By-the-way, about Deep OTM calls, when market was around 5300 and still expecting to fall further, and when I baught deep OTM Sept-6000CEs at Rip-Cheap rates, friends suggested me I may have instead buy some Pizzas. And now also the same situation is unfolding, but better wait for 20-Spet. ( I have a few Oct-5400PEs, to be frank and just continueing 2-lots Sept-6000-CEs ).
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amitagg
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| Post: #5 Posted: Sun Sep 15, 2013 11:32 am Post subject: |
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| I agree with positioning.....so how do we play it....given the highs excepted at 6000-6100, OTM Puts 5500-5600 Oct would be better buys at 6000....i too would buy then....thanks [point is we should not miss 400-500 fall from 5900-6100....again ifs and buts |
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saumya12
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| Post: #6 Posted: Sun Sep 15, 2013 2:07 pm Post subject: |
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Pats
You started this thread to discuss NR7
But discussing options.
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Pats
White Belt
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| Post: #7 Posted: Sun Sep 15, 2013 7:52 pm Post subject: |
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@amit
Although, I am not expecting crossing of 6070 ( cl. basis) this expiry, but still to hedge my Oct-5400PEs, I kept 2-lots Sept-6000CEs ( out-of total 7, I squared 5 lots avrg @107 pts) last week. So taking the risk of Gap-down or TDecay for longs. In case, market trends more upward towards 6300 and beyond, I may add Oct-CEs as and when needed. By God's grace generally, I get positive results. May be because I am not trading in big quantities and only trade occasionally !
Or may be, b'cause I am not taking too much risk of playing ITM options. Who knows !
Your suggestion of "OTM Puts 5500-5600 Oct would be better buys at 6000.." is nice, if and only if, >6000 level is reached. But expert like you, is pointing towards >6000 means there must be some good meaning, considering TDecay factor.
)
@saumya
Shakespier said, what is in the name (Title).
But, you are right ! Just to avoid wastage of this thread, I continued here, and may change the Title - Subject, if it allowed.
By the way, the promoter/maintainer of this site, has done a decent job to provide this discussion platform for many like us. And just to appriciate thier nice efforts, I am sharing a basic subscription with one of my Mumbai friends from last 3 years or more. Although I have never used any of the paid services so far - including Inraday charts, b'cause I always do positional trade partly due to time constraint. But yes, I refer the EOD charts. I will be more happy, if someday, this site may also bring an IPO like Fbook/Tter. Just wishful thinking - loudly !
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voyager
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| Post: #8 Posted: Sun Sep 15, 2013 10:54 pm Post subject: |
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| well, though this thread started with NR7 meaning, but it has entered into an an interesting discussion. However thanks to the administrator /maintainer of this site for allowing such discussions. keep it on. |
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Pats
White Belt
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| Post: #9 Posted: Mon Sep 16, 2013 1:36 pm Post subject: |
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| Long SL got hit @95 for my 2-lots of Sept-6000CEs. So now no long positions currently. All longs in profit booked. Finfures crossed ! |
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Pats
White Belt
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| Post: #10 Posted: Wed Sep 18, 2013 6:42 pm Post subject: |
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Today was the surprise day for me. Out-of boredom, kept buy orders for 12-lots of Sept-6100CEs at various rates with some as low as 15. of-which 6 orders got executed with avg value of 26. Sunsequently kept all orders for sale at diff. rate some as high as 50, of which 4 got executed with avg rate of 41.
But due to Fed's QE3 event, I was not in the mood of carrying any longs, but now I have 2-lots of Sept-6100-CEs in my a/c balance.
Though in profit, but hoping to square-of these lots in @cost or may-be some loss.
May be Ganeshji's blessings in disguise, today's trades !!
Guess QE3 may be a non-event, lets see... |
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amitagg
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| Post: #11 Posted: Wed Sep 18, 2013 7:27 pm Post subject: |
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| Yes ..also since not many as u say are factoring non-event possibility of Q3 and as Vinay mentioned few days back that Options should NOT be preferred to FUTURES in this market(at those circumstances) that it is possible that OPTION WRITERS WOULD MAKE THE CUT rather than naked option buyers (unless both calls and puts are bought and IVs give profit) |
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Pats
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| Post: #12 Posted: Thu Sep 19, 2013 10:11 am Post subject: |
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| amitagg wrote: | Yes ..also since not many as u say are factoring non-event possibility of Q3 and
~SNIP~
that it is possible that OPTION WRITERS WOULD MAKE THE CUT rather than naked option buyers (unless both calls and puts are bought and IVs give profit) |
As expected, Fed's QE3 turned out to be a non-event ! No change in Fed's stance for the time being, which also implies policy makers prefered populist measures under the influence of strong Industrial Lobby, which in-turn may also implies a possible Lehman type bubble in-the-making in near future !
What a crux of leveraged economy inter-dependent on inclusive world economy, which is far from de-coupling saga, which some experts in BRICS countries and developing nations believe, that means even developed economy has to Stop-Think-Ponder-and-Consider abt dependent developing economies before even thinking of persuing the policy methods which they them-selves had out-lined a few months back i.e. tapering !
Mr. Rajan has a tough job ahead, considering the pain of non-action in last four-and-odd years span in India. Either he will also have to go a path of non-event on 20th Sept policy or a carefully drafted measures balancing Inflation and Growth with the limited tools like mild CRR-cut, Interest rate stability or Repo rate tinkiering, and some major steps to boost more FII participation in market and Infra-structure bonds - something like that.
So the efforts will be to stabilize the markets for a while, until some positive data starts pouring-in from the Farm Sector with a good mansoon in the back-ground !
I am carrying 2-lots of Sept-6100-CEs, which were accidently left-behind in yesterday's trades.
I hope, call writters are not trapped who wrote ITM calls ! Best Luck to them, hoping the current rally may fissle out in the next week ! |
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Pats
White Belt
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| Post: #13 Posted: Thu Sep 19, 2013 3:19 pm Post subject: |
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It would be interesting for the all die-hard chartist experts, to study the history of the subsequent chart patterns un-folded after such big and fierce Gap-ups and what could be the next predictable moves in Nifty/Sensex !
The dare-devils must not get trapped to initiate shorts in hurry, wait and watch is the Mantra for the newbees ! But generally, 1-2-3 steps (Up-Dn-Up) are repeated in history, I think !
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amitagg
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| Post: #14 Posted: Thu Sep 19, 2013 4:00 pm Post subject: |
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| 1-2-3 with 1 starting tomorrow or today |
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Pats
White Belt
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Posts: 407
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| Post: #15 Posted: Thu Sep 19, 2013 8:39 pm Post subject: |
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| amitagg wrote: | | 1-2-3 with 1 starting tomorrow or today |
Step 1 is already started, may continue for intra-day..., with the exception of continuety of positive news!
It seems, on 20th Sept, market may give intraday chances for both sides upward and downward. Using the knowledge of Nifty movements along with proper RSI levels, one can get quick profits even if market remains choppy or RB. Nervous-ness is bound to prop-in the trades due to ultra-highs which Nifty attained today.
Nifty charts are attached for observation, 1st one is 1Y span, RSI, Momemntum, and MACD signal line, all are in the positive territory.. |
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