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 | ICICIPRULITOP | 431.00 | +0.60% | NR7 | 414.00 | 406.40 | 7.60 | 1.84% | 12.85 | 12.43 |
38.9%
|
414.00 | 406.40 | 18.2 | ▼ Bear |
| 2 | ICICIGITOP | 1574.00 | +0.07% | — | 1580.80 | 1553.30 | 27.50 | 1.74% | 28.75 | 32.63 |
15.7%
|
1580.80 | 1553.30 | 24.9 | — Neut |
| 3 | SBILIFETOP | 1652.00 | -0.88% | — | 1685.90 | 1645.80 | 40.10 | 2.42% | 40.62 | 39.77 |
-0.8%
|
1685.90 | 1645.80 | 42.6 | ▼ Bear |
| 4 | HDFCLIFETOP | 517.00 | +0.56% | — | 525.80 | 510.50 | 15.30 | 2.91% | 10.19 | 12.08 |
-26.7%
|
525.80 | 510.50 | 29.9 | ▼ 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.