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 | DLFTOP | 650.90 | +0.88% | — | 648.65 | 630.60 | 18.05 | 2.80% | 16.89 | 18.70 |
3.5%
|
648.65 | 630.60 | 49.9 | ▲ Bull |
| 2 | OBEROIRLTYTOP | 1827.30 | +0.33% | — | 1830.00 | 1785.60 | 44.40 | 2.44% | 45.75 | 44.37 |
-0.1%
|
1830.00 | 1785.60 | 37.0 | — Neut |
| 3 | GODREJPROPTOP | 2078.80 | +2.47% | — | 2104.40 | 1965.20 | 139.20 | 6.86% | 67.50 | 61.85 |
-125.1%
|
2104.40 | 1965.20 | 53.1 | ▲ 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.