the hAndbook of technIcAl AnAlysIsiD/nr4‐7 Breakouts
The Inside Day Narrow Range pattern or ID/NR pattern is a volatility breakout
pattern. An ID/NR n pattern denotes an inside day breakout from the narrowest
bar over the last n days. In Figure 7.38 we observe an ID/NR6 pattern where we
see an inside bar breakout. The last bar is the narrowest bar of the last six days.
This pattern has no bearish or bullish sentiment associated with it. The breakout
can occur in either direction.
In Figure 7.39 we observe an Inside Month/NR5 pattern breakout where we
see an inside bar breaking out to the upside on the monthly chart of Dynegy Inc.
Figure 7.38 ID/NR6 Pattern.
Figure 7.39 Inside Month /NR5 Pattern on the Monthly Chart of Dynegy Inc.
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