Crabel price pattern NR7, narrowest range in 7 days...does this mean this is a "pause" before a continuation of the current trend? I couldn't get through the entire book....
If I remember correctly it means buy the breakout above the NR7 bar, or sell the break below it. I researched it a few years back and found that many NR7's are followed by an NR8. And that most NR7's occur in a holiday week when trading is light. I also noted that you are quickly stopped out and the pattern isn't really all that great.
been wondering, just in general, when a crabel orb saturates and fails over time, is there a typical evolution for this pattern? I tend to observe that it pushes more volatility into the overnight session, or possibly migrates the optimal exit from the close to an earlier period. it's interesting how this pattern will manifest in a market, and inevitably after about a year or so someone will come screaming from the rooftops about their discovery i've only done very minimal testing of NR7's and not recently, but it's an interesting synthesis of his general idea. (i also couldn't make it through his book, but the guy was clearly well inspired)
<p>In my experience a NR7 is just a measure of volitility. Since markets follow the pattern of move-rest-move, then an NR7 is a signal that there is a higher probability that the market or stock or whatever is going to move.</p>