NR7 Breakout
BullishContinuationIntermediateThe narrowest candle of the last seven. Quiet first, then a move.
Verdict: SkipBitcoin 4H: 329 trades, won 56%, avg trade 0.0% vs random day +0.1%. Backtest
Price is in an uptrend.
step 1/6
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | In an uptrend: a candle with a narrower range (high to low) than each of the 6 candles before it. Then a candle CLOSES above its high within 3 candles. |
| Cancelled if | Price trades below the NR7 candle's low before that close. |
| Target | 2x the NR7 range, projected from the breakout |
3 common mistakes
- Expecting a big target from a tiny candle: the target scales with its range.
- Buying the NR7 candle itself: it says a move is coming, not which way.
- Ignoring the trend: a narrow candle in a downtrend often breaks down.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 | 329 | 56% | +0.03% | +0.07% |
| US large caps (50) · 1D · 2016-2026 | 3368 | 58% | +0.05% | +0.21% |
Verdict: SkipIt made money, but less than buying on a random day.
pattern +9.0%random +22%
pattern +178%random +694%