STEP 1: DETERMINE ORB NR4

The picture below shows the Nr4 pattern:

NR stands for “narrow range”, and the number 4 means the last candle of the 4 candles have a margin smaller than the previous 3 candles.

Note that the 4th candle does not have to be the inside candle, but we only compare the amplitudes. But if it's the inside candle, the success rate is higher.

The NR4 pattern in practice:


STEP 2: IDENTIFY THE BEST CANDLESTICK PATTERN AND HIGHLIGHT THE HIGHS AND LOWS OF THE 4TH CANDLE STEP 2:

When you look for the Nr4 pattern, note to of 2 things:
  • The range of the 4th candle should be narrow and smaller than the previous 3 candles.
  • The fourth candlestick price zone should also be in the 3rd candle.
The Nr4 pattern in the chart above is pattern bullish, so we should buy it. As the market range is narrowing, it could be accompanied by an expansion move. Therefore, Nr4 model can help us capture this move.


STEP 3: SWITCH BACK TO THE H1 FRAME AND OPEN A LONG POSITION WHEN THE PRICE BREAKS THE HIGH OF THE 4TH DAY, SELL IF THE PRICE BREAKS THE LOW OF THE 4TH CANDLE

As shown below:


Note: Buy or Sell only if the breakout occurs during the first 5 hours of the new trading day.

Transactions based on the Nr4 pattern will usually show you immediately profit. Otherwise, your trading strategy will also lose its effectiveness. If during the first hour you still cannot make a profit, you can close your trade.

STEP 4: STOP LOSS AND TAKE PROFIT

Set your stop loss below the 4-day low of the NR4 pattern, and take profit using the stop loss that goes under the low of the H1 candlestick.

For buy trades, the stop loss could be placed below the model's 4-day low. And in contrast to sell command.

Take a look at the picture below: