candle chart pattern analysis NR 4 / NR 7 pattern

The market goes through a regular cycle of contraction and expansion. At this time, the NR strategy allows us to prepare for imminent strong expansion.

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The base period for NR4 is 4 days If the price range for a particular day (the interval between the highs and lows of the candle) is the lowest compared to the last 4 days, that day means NR4. Similarly, if the base period of NR7 is 7 days, it means that if the price range of a specific day is the lowest compared to the last 7 days, that day is NR7.

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If the candle the day after NR4 or NR7 breaks above the high of the NR candle, if it breaks above the high of the NR candle, it is bearish.(Same as a squeeze/extension of a Bollinger band)

Example of NR4 Patterns

 

 

 

Multiple Examples of NR4 Patterns

 

It can be seen that the ATR index decreases when NR4 and NR7 candles occur, which means that the candle has the lowest range in the last 4 or 7 days.*In many situations, the NR7 pattern is created near the start of a new wave.

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SummaryThe base period of NR7 is NR7 if the current price range of candles is the lowest compared to candles in the past 7 days.The base period of NR4 is if the current candle price range is the lowest compared to that of the past 4 days.Buy if the existing candle is an NR pattern and the current candle breaks above its high pointIf the existing candle is an NR pattern and the current candle breaks through the low, it sellsThe default setting is daily.