
Narrow Range Bar Trading Strategy
The narrow range bar or NR bar for short is a popular trading strategy that offers fixed stops and target levels. It can be used across any chart interval and the strategy in itself is built on solid principles. The concept of the 'Narrow Range bar' strategy is based on price action and states that when the range (High - Low) is the lowest or the narrowest within the past 'x' number of bars, it is indicative of a big move (either to the upside or downside). However, the NR bar strategy has many variations. One of the most popular methods is to take long positions when an NR Bar set up is formed above the 100, 200 or 250 SMA and short positions are preferred when an NR Bar set up is formed below any of those longer term moving averages. Also accompanying the NR Bar set up is the ATR (Averag...