Shorting NR7 Inside Days with a Falling Moving Average

Summary

This short-only setup looks for a narrow-range seven day that is also an inside day: its range is smaller than each of the previous six, while its high and low remain inside the prior day's range. It enters short when that combined pattern closes below its open and the 14-period simple moving average is not rising. The script also marks qualifying patterns and colors them according to the candle direction. A long-side counterpart is shown only as a disabled example.

The source says the short is closed on a later bearish day, but its actual close condition is simply another candle closing below its open, so the code does not clearly require a later day or a distinct exit signal. No market, test period, or performance results are supplied. The setup is therefore a rule example rather than evidence of an edge; the description also leaves execution details and behavior in different market conditions unassessed.

Key ideas

• An NR7 day has a range narrower than each of the preceding six days.
• An inside day stays within the previous day's high and low.
• The short entry combines both patterns with a bearish candle and a non-rising 14-period SMA.
• The code's close condition repeats the bearish-candle test and provides no separate performance evidence.

Tags

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