Long Strategy Combining NR7 and Inside-Day Patterns

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 prior six ranges, while the current high and low remain within the previous day's high and low. A qualifying bar triggers a long entry only when it closes above its open and the selected simple moving average is rising. The strategy closes the position when a later bar closes below its open.

The script can mark the patterns and color qualifying bars, and its moving average color reflects slope direction. Its default moving average length is configurable, and the accompanying description recommends adjusting it to change the slope filter. Although the document explains the entry and exit rules, it supplies no backtest statistics, market-specific evidence, transaction cost assumptions, or risk controls. Performance therefore cannot be inferred from the pattern definition alone, and results may vary with instrument, timeframe, and moving average setting.

Key ideas

• An NR7 bar has a range smaller than each of the preceding six bars.
• An inside day stays within the prior day's high and low.
• Long entries require both patterns, a bullish close, and a rising simple moving average.
• The position closes on a later bearish close.
• The document gives no measured performance or risk management rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.