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 | IGLTOP | 138.75 | -2.04% | — | 141.85 | 138.51 | 3.34 | 2.40% | 3.76 | 3.90 |
14.4%
|
141.85 | 138.51 | 31.9 | ▼ Bear |
| 2 | MGLTOP | 1046.90 | -0.58% | — | 1053.90 | 1031.00 | 22.90 | 2.18% | 22.23 | 24.43 |
6.3%
|
1053.90 | 1031.00 | 52.1 | ▼ Bear |
| 3 | GAILTOP | 165.17 | +0.24% | — | 170.70 | 165.50 | 5.20 | 3.10% | 4.21 | 4.47 |
-16.3%
|
170.70 | 165.50 | 52.6 | ▼ Bear |
| 4 | GUJGASLTDTOP | 229.77 | -3.70% | — | 239.89 | 229.50 | 10.39 | 4.52% | 7.96 | 7.58 |
-37.1%
|
239.89 | 229.50 | 29.0 | ▼ Bear |
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.