Long-Only NR7 Inside-Day Breakout Filter with SMA Slope
Summary
This long-only strategy looks for a narrow-range seven day that is also an inside day. The range must be smaller than each of the previous six days, while the day's high and low remain inside the previous day's range. It enters long only when that setup closes higher than it opened and a 14-period simple moving average is rising. The stated exit closes the position on a later bullish day, when the close is above the open. The script also marks the patterns and colors bars and the average by direction.
The document provides the trading rules and source code, but no backtest settings or performance evidence. It describes a daily pattern, so applying it to other chart intervals may change its meaning. The exit rule is unusual because it closes on a bullish day rather than a bearish one, and no stop loss, target, sizing method, or cost model is specified. The setup may be useful as a pattern definition, but profitability and suitability require separate testing.
Key ideas
- An NR7 day has a range narrower than each of the six prior days.
- An inside day stays within the previous day's high and low.
- A long entry requires both patterns, a bullish close, and a rising 14-period simple moving average.
- The documented exit closes the long position on a later day that closes above its open.
- The document supplies no performance evidence, stop loss, target, or trading cost assumptions.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.