NR7 Scan Candidates: 5/1/2007

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

I’ve traded a couple of NR7 breakouts so far, and they have been a bit mixed in their success. I’ve gone long or short based on which way the NR7 breaks out. Since I’ve been testing, I’m on hiatus from regularly posting my trades. I should be back to posting my trades when I get the system nailed down to where I like it. Here’s the candidates for 5/1/2007:

RTN, CAH, MDII, BCS, CPSL

As the scan code stands, it looks for NR7’s with volume contraction that are taking place after a high volume spike within the last 3 weeks. I’m thinking of requiring a gap or a huge price move in the recent past as well. Some NR7’s happen just because the stock is dead, while some are pauses in surging volatility. You want to find the pauses that are likely to resume and avoid the dead stocks. I’m still monkeying with the scan code, but here’s the most recent:

/*NR7 Scan By Jamie and Prospectus
http://traderjamie.blogspot.com/
http://www.movethemarkets.com/blog/

Filter out OTC and low volume stocks
----------------------------------------------*/
Show stocks where market is not OTCBB
and close is between 1.00 and 100
and average volume(30) is greater than 200000
and volume is greater than 50000

/*NR7 Price and Volume contraction scan
----------------------------------------------*/
and average day point range(1) reached a new 7 day low
and volume is more than 20% below volume 1 day ago
and average volume(2) is below average volume(5)

/*Find recent huge volume movers from the NR7 results
---------------------------------------------------------------*/
and average volume(5) is more than 50% above average volume(30)
and volume reached a new 12 week high within the last 3 weeks

/*Change date offset to get results from the past
---------------------------------------------------------*/
and date offset is 0

/*Lines below are just for chart formatting.
Change according to your preferences!
-----------------------------------------------------*/
and draw ema(5) and draw ema(30)
and draw average day point range(1) 7 day high

Comments are always welcome!

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com