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 | IDEATOP | 13.99 | -1.34% | NR7 | 14.29 | 14.07 | 0.22 | 1.55% | 0.34 | 0.43 |
48.8%
|
14.29 | 14.07 | 85.0 | ▲ Bull |
| 2 | INDUSTOWERTOP | 440.95 | +1.08% | — | 439.80 | 432.50 | 7.30 | 1.67% | 9.70 | 9.62 |
24.1%
|
439.80 | 432.50 | 75.2 | ▲ Bull |
| 3 | BHARTIARTLTOP | 1829.00 | -1.25% | — | 1869.40 | 1840.40 | 29.00 | 1.57% | 30.10 | 28.48 |
-1.8%
|
1869.40 | 1840.40 | 49.3 | — Neut |
| 4 | TATACOMMTOP | 1940.70 | -1.32% | — | 2048.00 | 1924.50 | 123.50 | 6.28% | 122.03 | 118.22 |
-4.5%
|
2048.00 | 1924.50 | 77.1 | ▲ 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.