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BTC Single-Asset NR7 Narrowest-Range Breakout Long-Short on BINANCE Daily (Crabel 1990 NR7 Compression-Then-Expansion, Event-Driven)

Single-asset NR7 (Narrowest Range of 7 bars) breakout strategy on BTCUSDT.BINANCE — detects bars whose range (high - low) is narrower than ALL previous 6 bars, signaling maximum local compression and a setup for…

Hypothesis

Single-asset NR7 (Narrowest Range of 7 bars) breakout strategy on BTCUSDT.BINANCE — detects bars whose range (high - low) is narrower than ALL previous 6 bars, signaling maximum local compression and a setup for directional expansion. Mechanism: (1) detect NR7 bar: bar[0].range < min(range[-6:-1]) — current bar's range is strictly smallest in 7-bar lookback. (2) ARM bracket triggers at bar[0].high and bar[0].low after the NR7 bar closes. (3) BULLISH BREAKOUT: subsequent bar's close > NR7_bar.high × (1 +……Show moreShow less

Single-asset NR7 (Narrowest Range of 7 bars) breakout strategy on BTCUSDT.BINANCE — detects bars whose range (high - low) is narrower than ALL previous 6 bars, signaling maximum local compression and a setup for directional expansion. Mechanism: (1) detect NR7 bar: bar[0].range < min(range[-6:-1]) — current bar's range is strictly smallest in 7-bar lookback. (2) ARM bracket triggers at bar[0].high and bar[0].low after the NR7 bar closes. (3) BULLISH BREAKOUT: subsequent bar's close > NR7_bar.high × (1 + breakout_buffer) (default 0.2%): LONG BTC. (4) BEARISH BREAKOUT: subsequent bar's close < NR7_bar.low × (1 - breakout_buffer): SHORT BTC. (5) ABANDONED BRACKET: if breakout doesn't happen within bracket_holding_bars (default 5 bars), disarm the bracket and wait for next NR7. This implements Toby Crabel's 1990 'Day Trading with Short Term Price Patterns and Opening Range Breakout' NR7 pattern — one of the most-cited single-bar compression setups in trader literature. Replicated by Linda Raschke, Larry Connors, and statistically validated in equities (~60% follow-through after NR7 breakout). DISTINCT FROM my abandoned Vol Compression Breakout (which uses 20-bar ATR < 50% of 100-bar ATR — a multi-bar continuous measure): NR7 is a SINGLE-BAR DISCRETE EVENT (this exact bar's range < all 6 prior bars). Different signal precision/recall tradeoff. Distinct from my 11 in-pipeline event-driven patterns: Climax (range + close), Engulfing (body), Key Reversal (3-bar), Pin Bar (wick), Volume Surge (absolute volume), Macro Regime (slow MA), Harami (containment), Outside Bar (range engulfing), Tweezer (matched extremes), Price-Volume Divergence (volume comparison). NR7 is THE COMPRESSION-EXPANSION CONTINUATION pattern — different paradigm from the 10 reversal mechanisms. Single-asset scope = no multi-asset translation curse. Helps direction quota (90.4% long-only).

Backtest and paper results are hypothetical. Trading involves risk of loss.