Poll: What does NR7 Mean?

I don't have the ability to do this, but the best way to decide how many bars to evaluate for NR7 is to back test both methods and see which produces better results. Maybe someone can do that and post the results.

I'm nowhere near as experienced as yourself or a lot of your readers, and I don't use NR7s in my analysis. That said, I would probably do it your way (current bar + past 7) since the current bar is really a partial bar (is that a term?). So you would only be getting 6.x bars if you did the current + the 6 previous bars.

does it really matter?
i bet on most occasions the NR7 bar would be narrower than the previous 6 and previous 7 bars.

Jason -- What you say does happen a lot for intraday charts and you're right, in those cases you don't want to consider that bar until it's complete. But for end-of-day scanning it's a non-issue.

JRig & Born2Code -- It really doesn't make a huge difference. I don't think there's anything magical about NR6 vs. NR7 vs. NR8... except for the possible effects of them becoming self-fulfilling because a bunch of traders are all looking at the same thing. It would be interesting to do some back-testing to see how many NR7s go on to become NR8s.

I avoid the whole issue by scanning for NR5's instead. Oh wait, that doesn't help...

:((

If it is an eod scan, then that day's bar is the 7th, or 5th for NR5. So, you are comparing that day's bar to the previous 6 (or 4 for NR5).

I have been following NR7 and the other Toby Crabel numbers on the http://www.mypivots.com/DailyNotes/dailynotes.aspx page for 2 years now and I had the same question about the 7 or 8 days until I looked at their notes which says that it is 7 days - or at least that is what it implies.

Do you follow any of the other Toby Crabel numbers like the Bear Hook or the Inside Day etc?

Thanks for a great web site!

Thanks X, it's now as clear as mud. ;-)

Cath, the name Tony Crabel sounds familiar but I don't think I've ever read any of his stuff. I do scan for inside days though.

Toby Crabel is the one that made the NR7 and other numbers like the ID and OD etc. popular. He wrote a book about it and was the first person to run extensive tests on the behavior of the S&P500 against the opening range etc.

Here's our definition of NR7:
"NR7 means that the last candlestick has the narrowest price range of the last 7 candlesticks. Our NR7 alerts look at a 15 minute stock chart.

A description of “NR7-2” means that the stock chart shows an NR7 pattern for the last candlestick, and for the previous candlestick. “NR7-3”, “NR7-4”, etc., are all defined in the same way. This information is also available as a filter.

The NR7 pattern shows when a stock’s price shows a short-term pattern of decreasing volatility. In this way NR7 is like a triangle chart pattern, but with more emphasis on the volatility, and less emphasis on the specific shape or direction. In either case the common assumption is that volatility is like a spring. When you push in on it, it has to pop back out. The longer and harder you push, the more explosive the final reaction will be.

The NR7 pattern does not, by itself, predict which direction a stock will move. People use it to predict which stocks are likely to make a large price move. "

Here's a real-time sample of the NR7 in action