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 | GUJGASLTDTOP | 327.05 | +1.10% | NR7 | 267.45 | 261.25 | 6.20 | 2.33% | 9.51 | 9.89 |
37.3%
|
267.45 | 261.25 | 25.4 | — Neut |
| 2 | MGLTOP | 1092.10 | +1.40% | NR4 | 1082.90 | 1064.50 | 18.40 | 1.71% | 20.45 | 21.32 |
13.7%
|
1082.90 | 1064.50 | 40.8 | ▼ Bear |
| 3 | IGLTOP | 150.20 | +0.58% | — | 149.95 | 147.20 | 2.75 | 1.84% | 3.00 | 3.60 |
23.6%
|
149.95 | 147.20 | 44.9 | ▼ Bear |
| 4 | GAILTOP | 173.91 | +2.29% | — | 171.18 | 167.27 | 3.91 | 2.30% | 3.12 | 3.29 |
-18.8%
|
171.18 | 167.27 | 50.4 | ▲ 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.