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In a message dated 9/18/98 7:47:06 PM Pacific Daylight Time,
tmorge@xxxxxxxxxxxxxxx writes:
<< >
> (By the way, have you ever seen so many NR7 days in one week? The >night
markets have stolen our volatility!)
>
> Successful, stress-free trading to all,
>
> Bill Masciarelli
<< How about giving us some pointers on NR7 days and how to take advantage of
them? >>
range expansion follows range contraction and a Narrowest range of the last
seven days is merely one way to measure volatilty contraction. During range
expansion or on a big range day the market will have ( at least the spoos ) a
tendency to be more trendy ie open at one extreme and close at another. Very
simple opening range breakout stop and reverse systems will work great if they
are traded on these types of days. I trade this way.
No by the way i have never seen so many narrow range directionless CONSECUTIVE
days like this... I also have never had this large a drawdown due to this. 12
consecutive losers . ouch. I would also encourage anyone who is contemplating
using a simple arithmetic measure to decide when to switch on or switch off a
ORBOS ( opening range break out system ) to do a bit more work on some
fundamentals of what causes narrow range days....
Dale
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