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 | POWERGRIDTOP | 288.85 | +0.23% | NR7 | 290.05 | 286.40 | 3.65 | 1.27% | 5.36 | 5.09 |
28.3%
|
290.05 | 286.40 | 57.0 | — Neut |
| 2 | ADANIPORTSTOP | 1770.40 | +0.12% | — | 1784.90 | 1755.20 | 29.70 | 1.68% | 35.48 | 34.75 |
14.5%
|
1784.90 | 1755.20 | 35.5 | — Neut |
| 3 | LTFTOP | 312.75 | +3.42% | — | 304.80 | 297.15 | 7.65 | 2.53% | 7.22 | 6.52 |
-17.3%
|
304.80 | 297.15 | 33.2 | ▲ Bull |
| 4 | LTTOP | 3806.00 | +0.54% | — | 3805.00 | 3720.00 | 85.00 | 2.25% | 43.45 | 45.78 |
-85.7%
|
3805.00 | 3720.00 | 31.0 | ▼ 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.