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 | 509.80 | +1.85% | — | 503.05 | 495.55 | 7.50 | 1.50% | 9.31 | 13.38 |
43.9%
|
503.05 | 495.55 | 58.5 | — Neut |
| 2 | HDFCLIFETOP | 552.85 | -0.40% | — | 556.75 | 547.20 | 9.55 | 1.72% | 7.84 | 12.78 |
25.3%
|
556.75 | 547.20 | 40.2 | ▼ Bear |
| 3 | ICICIGITOP | 1681.00 | +1.16% | — | 1666.20 | 1605.00 | 61.20 | 3.68% | 36.23 | 61.55 |
0.6%
|
1666.20 | 1605.00 | 37.9 | ▼ Bear |
| 4 | SBILIFETOP | 1866.80 | +0.44% | — | 1889.50 | 1830.10 | 59.40 | 3.20% | 37.67 | 40.22 |
-47.7%
|
1889.50 | 1830.10 | 55.6 | ▲ Bull |
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.