ETF Range Projections 1.26.12
A man wrapped up in himself makes a very small bundle.
- Benjamin Franklin
Current World Markets:
trade safe and
have a great day!
Connors and Raschke – Range Contraction (ID/NR4)
An NR4 is a trading day with the narrowest daily range of the last four (4) days. An inside day (ID) has a higher low than the previous day’s low and a lower high than the previous day’s high. Combining the two conditions sets up the ID/NR4 day.
Rules from: Street Smarts by Connors and Raschke
- Identify an ID/NR4.
- Next day ONLY, place a buy stop above and a sell stop below the ID/NR4 bar.
- On entry day only, if filled on the buy side, enter an additional sell stop below the ID/NR4 day. This means that if we’re stopped out we exit our long and reverse short.
- If the position is not profitable within two days and you have not been stopped out, exit on the close.
I screened my database of optionable stocks (approximately 3,600) and found the following (click picture to enlarge). Being somewhat of an old timer I didn’t use a tick above or below but an eighth above and below. It’s not for everyone but play with it, you might just like it 
