Narrow Range (NR) trading strategy is a breakout-based method that assumes that the price of security trends up or down after a brief consolidation in a narrow range. This indicator can plot:
1. Narrow Range (NR) 4, 7, and 21
2. Narrow Range (NR) 4, 7, and 21 + Inside Bars (IB)
NR 4/NR 7/NR 21 day acts as a confirming factor on where the price will move further....
Indicator Script for identifying Narrow Range 4 / 7 + Inside Bar
It also helps to check whether NR4 / NR7 breakout trading has been profitable or not in the past in a particular instrument.
It has helped me to select profitable scripts and avoid losing ones. Can be used for anytime frame.
NR4 == Narrowest range of 4 periods + signal day is an inside...