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 | 151.75 | -0.99% | NR7 | 152.50 | 151.02 | 1.48 | 0.98% | 2.49 | 3.48 |
57.5%
|
152.50 | 151.02 | 57.9 | ▼ Bear |
| 2 | GAILTOP | 174.10 | +0.00% | — | 175.18 | 173.01 | 2.17 | 1.25% | 3.02 | 2.85 |
23.9%
|
175.18 | 173.01 | 50.7 | — Neut |
| 3 | MGLTOP | 1085.60 | -1.31% | — | 1099.90 | 1080.40 | 19.50 | 1.80% | 21.85 | 22.63 |
13.8%
|
1099.90 | 1080.40 | 39.6 | ▼ Bear |
| 4 | GUJGASLTDTOP | 241.20 | -5.52% | — | 249.21 | 240.36 | 8.85 | 3.67% | 6.00 | 5.60 |
-58.0%
|
249.21 | 240.36 | 34.8 | ▼ 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.