This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I don’t know yet how he does it, but he does call the trades out in real-time. If I have time to watch it, and verify it, I’ll post the link.
This is a fairly typical day for the ES with his (free) system.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Here’s the results of the NR7 Scan for today:
From now on, instead of spamming MTM proper with my scan candidates, I’ll post them on a dedicated page daily. You can find the link to them on my author profile.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I posted my Stockfetcher code to a page under my Author Profile. I’ll keep my most recent version there, so anyone who cares can find it there.
Here’s the NR7’s for today, 5/8/2007:
HLIT, CHB, TRN, CF
I’ll be watching for the High / Low to be breached by the bid/ask spread plus two ticks, with a nearby support / resistance as the target.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I spent some time this weekend trying to understand exactly what I was looking for with my NR7 scan. Jamie pointed out an article by Alan Farley that also helped. I want to see a stock that is unusually active, with a big range expansion, that contracts as narrowly as possible on declining volume, making the coiled spring. I made a refinement to my filters to narrow down the NR7’s from 100 to about 5-10 on average. Read the rest of this entry »
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Any guesses on the secret to this one? The 100pct system. I keep getting emails about it that start out:
“Would you believe me if I told you that I could show
you a method which has success rate of 100%?I’m serious. No position ever ends up a loser.”
I somehow got on their mailing list, I guess. If you read the page, it turns out to be an FX system, so my first guess is that it somehow relies on interest rate differentials to try to “guarantee” a return. The big red flag (other than the promise of a 100% win rate) is:
“While every position will end up producing a profit, the system does experience open equity drawdowns - meaning open positions can and will go negative, sometimes significantly. The trader willing and able to ride out those adverse periods will be well rewarded, though.”
If my understanding of market mechanics are correct, then any system that wins 100% of the time and has an ROI greater than the risk-free interest rate can and will be arbitraged right out of existence.
It’s an eye-catcher, though, to promise no losses… I’ll give them that. To be fair, I haven’t paid the $97 to see what the system is… maybe it is amazing. If they want to send me an evaluation copy for review, I’d be happy to give it every chance to prove to me that it’s safe for people to use.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Here’s the results from the NR7 Scan for tomorrow, sorted by volume:
MAR, CMI, JAH, GGG, CHIC, GDI, LNET, CCMP, HTI
These are not recommendations, but NR7’s that might be of interest to put on your watchlist for tomorrow. I’ll be watching for these stocks to break the high or the low of today by a few ticks, with the stop on the opposite side of the candle, like I did for MCGC and CAH. I’d also look at the daily charts to get a feeling of longer term bias, whether long or short, which could influence me to bypass an entry signal if it was in the “wrong” direction. I’d pick a target based on recent support or resistance, and I wouldn’t enter unless that risk:reward is about 3 or better.
Any comments on how to improve the system are appreciated!
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Here’s a couple trades I have taken from my NR7 scan lately. Red diamond denotes NR7, Orange line is entry, Red is stop, Green is target, exit noted with arrow:
MCGC Short 100 Shares
Entry: $17.97, Stop: $18.17, Target: $17.00
R: $20.50, Exit: $17.60
P/L: 1.78R, or $36.50
CAH Short 22 Shares
Entry: $70.02, Stop: $70.68, Target: $68.00
R: $14.52, Exit: $70.07
P/L: -0.08R, or ($1.10)
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
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: Read the rest of this entry »
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Jamie gave me a suggestion last night that I should focus on stocks that gap on high volume and then over the next few days print an NR7. I modified my Stockfetcher code to look for recent high volume movers that print an NR7: Read the rest of this entry »
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I’ve been working on a swing trade system that buys breakouts of NR7 candlesticks on a daily chart. The entry would be a break of the high plus a tick or two, and the stop a bit below the low of the NR7 candle. Jamie has been providing his trading expertise, and I have provided some mathe-magic. I use the fabulous stock scanner Stockfetcher to find the candidates. It’s easy to use and very easy to program it to search for what you want. The 2.0 version has a great interface.
This is what I’ve got so far in my Stockfetcher code:
Show stocks where close is above 1.00
and average volume(30) is greater than 200000
and volume is greater than 50000
and average day point range(1) reached a new 7 day low
and average volume(3) has been decreasing for the last 5 days
and volume is more than 30% below volume 1 day ago
and volume is more than 30% below average volume(3)
and draw ema(5) and draw ema(30)
and date offset is 0
Most of those things are self explanatory. Average day point range(1) gives the range of the day in a clean way, and finding a 7 day low gives you an NR7. Stockfetcher can also do percentage range, but I’m not sure whether points or percentages are better to use. The volume statements are there to look for a volume contraction along with the range contraction. I used an average volume to allow for a bit of wiggling, though the volume trend will be right. I picked the different volume numbers and the 30% volume reduction to narrow the number of candidates. Date offset lets you see scan results from the past–an offset of 2 gives results from 2 days ago and so forth.
Looking back, the following symbols were results of a scan on Monday, 4/23:
SAI, ATHR, PIR, UTIW, WLT, ICFI, DLIA
Out of those, SAI, ATHR were triggered and were up today. The others didn’t trigger an entry, so no losers on that day. In my examinations on other days, some candidates have triggered an entry and then dropped to stop you out. The system and the scan still need work in that regard.
Running the scan today, I get the following stocks as NR7’s at the close:
JDSA JSDA, JASO, IMAX, ILE, AIXD
We’ll see how they do tomorrow. Please offer any suggestions to improve the system or the scan!
EDIT: Per the comments, here’s the new code that yields tons of results:
Show stocks where close is above 1.00
and average volume(30) is greater than 200000
and volume is greater than 50000
and average day point range(1) reached a new 7 day low
and volume is more than 30% below volume 1 day ago
and date offset is 0
/*Lines below are just for chart formatting*/
and draw ema(5) and draw ema(30)
and draw average day point range(1) 7 day high
and do not draw average volume(30)
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
There are two flavors of this misconception:
Let’s look at them in a little more detail…
