This tool alerts you of NR7 (Narrow Range 7) setups. The NR7 strategy is a consolidation setup that identifies multi-day breakouts before they happen. It also pushes these alerts to your phone and laptop as a Discord alert accompanied by a screenshot of the chart at the instant of the alert and a link to the chart on TradingView (Figure 1).
Figure 1: Narrow Range Scanner in our Discord
- 1.They can find setups but they take a long time to look through.
- 2.They aren’t pushed to you as an alert or notification, you have to monitor them yourself.
- 3.They’re often not on the same screen as the chart of the stock you’re looking for, so they’re out of context.
An alert system like this addresses all of these issues.
This setup is a consolidation strategy that uses a daily timeframe and analyzes the past 7 trading days, each one represented by its own candle. A Narrow Range is in play if the 7th, most recent candle has a smaller change in price than the past 6 candles.
For example, if the range of the past 7 candles from the lowest tick to the highest tick were as follows... Day 1: 2.1% Day 2: 1.54% Day 3: 0.92% Day 4: 1.42% Day 5: 0.83% Day 6: 1.22% Day 7: 0.51% ... then Narrow Range setup is now in play because the 7th candle has the smallest (narrowest) range.
If there is a breakout at the high of the 7th candle, this indicates a bullish move that will likely last at least a couple of days. Whereas if there is a breakout at below the 7th candle, this indicates a bearish move.
Figure 2: Examples of NR4 and NR7 Setups
Figure 3: HON Bearish Breakout
- This has saved traders hours of scanning for consolidation setups
- This feeds traders new plays every day
- Other scanners may find consolidating stocks, but they’re passive scans that don’t push any alerts to you as this does
Again, you can try this out for free by joining our Project ScaleTrade Discord. Thanks so much for reading