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 | GODREJPROPTOP | 1568.00 | -2.00% | — | 1611.90 | 1568.00 | 43.90 | 2.80% | 54.32 | 61.37 |
28.5%
|
1611.90 | 1568.00 | 52.4 | ▼ Bear |
| 2 | DLFTOP | 686.75 | -1.09% | — | 699.60 | 686.50 | 13.10 | 1.89% | 16.84 | 16.62 |
21.2%
|
699.60 | 686.50 | 72.9 | ▲ Bull |
| 3 | OBEROIRLTYTOP | 1626.10 | -0.85% | — | 1661.90 | 1622.70 | 39.20 | 2.38% | 40.38 | 42.85 |
8.5%
|
1661.90 | 1622.70 | 40.1 | ▼ 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.