Find stocks in Narrow Range contraction — the tightest candles in 4 or 7 days. NR days often precede explosive breakout moves.
Find stocks in Narrow Range contraction — the tightest candles in 4 or 7 days. Narrow range days often precede explosive breakout moves.
| # | Symbol | LTP | Chg% | Pattern | Today High | Today Low | Range | Range% | 4-Bar Avg | 7-Bar Avg | Contraction | ▲ Breakout | ▼ Breakdown | RSI | Bias |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | GAILTOP | 163.58 | -3.21% | NR7 | 169.65 | 167.21 | 2.44 | 1.44% | 6.36 | 5.98 |
59.2%
|
169.65 | 167.21 | 47.3 | ▲ Bull |
| 2 | MGLTOP | 1075.20 | -2.54% | NR7 | 1105.60 | 1092.20 | 13.40 | 1.21% | 28.98 | 30.92 |
56.7%
|
1105.60 | 1092.20 | 36.7 | — Neut |
| 3 | IGLTOP | 158.64 | -3.63% | NR4 | 166.68 | 163.35 | 3.33 | 2.02% | 5.60 | 5.62 |
40.7%
|
166.68 | 163.35 | 43.8 | ▼ Bear |
| 4 | GUJGASLTDTOP | 401.30 | +8.52% | NR4 | 377.15 | 368.20 | 8.95 | 2.42% | 12.53 | 11.58 |
22.7%
|
377.15 | 368.20 | 52.1 | ▲ Bull |
NR4 and NR7 are Narrow Range candlestick patterns that signal a period of low volatility — a compression that often precedes a large directional move.
Look for NR7 stocks that also have a trending bias (Bullish or Bearish). If bias is Bullish and RSI is between 40–60, a breakout above the high is a high-probability setup. Combine with volume confirmation — a breakout candle with above-average volume is ideal.
Narrow Range Strategy is a breakout-based trading strategy based on the principle that volatility contraction usually precedes volatility expansion. When a stock's daily range narrows to its smallest in 4 or 7 days, it signals a potential explosive move in either direction.
NR4 (Narrow Range of 4 Days) identifies stocks where today's high-to-low range is smaller than the previous three days' ranges. This compression signals a potential breakout. Enter long if price breaks above today's high, enter short if price breaks below today's low.
NR7 (Narrow Range of 7 Days) is a stronger version of NR4 — today's range must be the smallest of the last seven days. NR7 breakouts carry higher probability because the volatility compression is more pronounced. A bullish breakout occurs when price moves above the NR7 candle's high; a bearish breakout when price falls below the NR7 candle's low.