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 | ICICIGITOP | 1792.20 | -3.16% | NR7 | 1870.70 | 1848.50 | 22.20 | 1.20% | 38.42 | 35.83 |
38.0%
|
1870.70 | 1848.50 | 44.7 | — Neut |
| 2 | SBILIFETOP | 1864.50 | -0.99% | — | 1888.50 | 1860.00 | 28.50 | 1.53% | 27.40 | 30.42 |
6.3%
|
1888.50 | 1860.00 | 41.9 | — Neut |
| 3 | ICICIPRULITOP | 503.95 | -3.62% | — | 529.00 | 517.00 | 12.00 | 2.29% | 9.22 | 10.31 |
-16.4%
|
529.00 | 517.00 | 22.3 | ▼ Bear |
| 4 | HDFCLIFETOP | 594.80 | -2.43% | — | 619.90 | 608.65 | 11.25 | 1.85% | 7.66 | 8.95 |
-25.7%
|
619.90 | 608.65 | 35.2 | ▼ 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.