The Daily chart for the Nifty given below highlights NR7 days. Note how these NR7 days identify the reversal of trend. Some NR7 bars also mark continuation. The NR7 on Friday, suggests reversal of the down move, for reasons explained above.
How do you trade the possibility of an up move ?
1. Identify a maximum of 10 stocks with high relative strength + high volatility.
2. Set up your Live Grid with these 10 stocks. During the trading day, look to buy new highs in the stocks, as also buy when the tm Trend indicator signals a correction in an uptrend.
3. Same principles should be applied to swing trading. Do this on end of day charts, or 30 minute charts if you can track the market during trading hours.
You have to make a complete trading plan with rules for Entry, Stop Loss, Profitable Exit & Trailing Stops.