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 | SBILIFETOP | 1696.10 | +0.30% | NR7 | 1697.70 | 1671.00 | 26.70 | 1.57% | 37.45 | 41.73 |
36.0%
|
1697.70 | 1671.00 | 36.7 | ▼ Bear |
| 2 | HDFCLIFETOP | 530.00 | +1.06% | NR4 | 531.50 | 518.20 | 13.30 | 2.51% | 17.45 | 15.61 |
14.8%
|
531.50 | 518.20 | 38.0 | ▼ Bear |
| 3 | ICICIGITOP | 1459.00 | -0.41% | — | 1465.00 | 1443.70 | 21.30 | 1.46% | 23.77 | 25.47 |
16.4%
|
1465.00 | 1443.70 | 2.9 | ▼ Bear |
| 4 | ICICIPRULITOP | 474.30 | +0.13% | — | 475.50 | 461.25 | 14.25 | 3.00% | 16.10 | 14.58 |
2.3%
|
475.50 | 461.25 | 31.7 | ▼ 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.