NR7 is a narrow range over the past 7 candles, range contraction leads to range expansion! Think of it like a potential turning point in stock movement, like a pivot point. The common school of thought is to treat a "7" like an indecision candle, using a bracket order or long/short if you only want to take it a single direction. You can find a free tool that lists...
Indecision is calculated based on ratio of wicks-body to full candle.
Similarly price rejection is calculated based on ratio of upper wicks to candle and lower wicks to candle.
In both cases sum of stats from last N candels are used to get smoother output. Coloring of indecision candle is based on two bollinger bands with different standard deviations. It can be...
