Narrow Range Inside Day Short Strategy
Strategy Logic
This short strategy combines NR7 and inside days for entry timing.
The logic is:
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Identify NR7, where range is narrowest over 7 days
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Identify inside day, with high lower than previous high and low higher than previous low
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On days when NR7 and inside day coincide, and close is lower than open
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And simple moving average slope is down, go short
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Cover short next day if close again lower than open
The strategy capitalizes on NR7 and inside days indicating congestion. Combined with MA slope and closing price filters, it improves short efficiency.
Advantages
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NR7 and inside days time reversals
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Conditions combine to avoid false signals
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Optional long/short operation
Risks
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NR7 plus inside day occurrences less common
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Requires MA parameter optimization
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SHORT-only misses long opportunities
Summary
This strategy shorts by efficiently identifying and confirming reversals. But lower frequency needs evaluation. Parameter tuning and long/short trading can expand strategy.
/*backtest
start: 2023-08-14 00:00:00
end: 2023-09-13 00:00:00
period: 4h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/
//@version=2
strategy("NR7ID: Narrow Range + Inside Day, Short Only Strategy (by ChartArt)", shorttitle="CA_-_NR7ID_Short_Strat", overlay=true) // max_bars_back=5000
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