NR7
Breakout

NR7 (Narrowest Range of 7 days): today's range is the smallest of the last 7 trading days. A clear volatility contraction. Explosive breakouts follow these compressed days more often than random chance, especially when combined with trend alignment.

Volatility CompressionDaily3:1 R:RModerateAny
7 days
Lookback
3× NR7
Target

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the NR7 Breakout setup.

NR7 (Narrowest Range of 7 days): today's range is the smallest of the last 7 trading days. A clear volatility contraction. Explosive breakouts follow these compressed days more often than random chance, especially when combined with trend alignment.

ATREMA 20
📈 Long NR7 Break
  • Today's daily range (high - low) is smallest of last 7 trading days (NR7)
  • Price above EMA 20 (trend alignment)
  • Next day: price breaks above NR7 day's high
  • Enter long on breakout on next trading day
  • Stop: below NR7 day's low
  • Target: 3× the NR7 day's range
📉 Short NR7 Break
  • NR7 confirmed (smallest range of last 7 days)
  • Price below EMA 20
  • Breakdown below NR7 day's low on next session
  • Enter short, stop above NR7 high
  • Target: 3× NR7 range projected down
⚙️ Configuration
  • // NR7 Config
  • Lookback: 7 trading days
  • Measurement: daily (high - low)
  • Entry: break beyond NR7 day on following session
7 days
Lookback
3× NR7
Target
💡 Pro Tip

NR7 alone is a mediocre signal. Combined with trend alignment (above/below EMA 20), it becomes substantially more reliable. You're catching volatility expansions in the direction of the existing trend, not random breakouts from compression.

Common questions

What is the NR7 Breakout strategy?

NR7 (Narrowest Range of 7 days): today's range is the smallest of the last 7 trading days. A clear volatility contraction. Explosive breakouts follow these compressed days more often than random chance, especially when combined with trend alignment.

What's the pro tip for trading NR7 Breakout?

NR7 alone is a mediocre signal. Combined with trend alignment (above/below EMA 20), it becomes substantially more reliable. You're catching volatility expansions in the direction of the existing trend, not random breakouts from compression.

What indicators does the NR7 Breakout strategy use?

The NR7 Breakout strategy uses the following indicators: ATR, EMA 20. These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for NR7 Breakout?

The NR7 Breakout strategy is best traded on the Daily timeframe. This can be adjusted based on your trading style and market conditions.

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