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 | 14.96 | +0.81% | — | 15.20 | 14.84 | 0.36 | 2.41% | 0.59 | 0.55 |
34.5%
|
15.20 | 14.84 | 59.0 | ▲ Bull |
| 2 | TATACOMMTOP | 1755.20 | -0.72% | — | 1785.00 | 1747.80 | 37.20 | 2.12% | 37.08 | 42.07 |
11.6%
|
1785.00 | 1747.80 | 60.6 | — Neut |
| 3 | BHARTIARTLTOP | 1840.00 | +0.21% | — | 1852.00 | 1830.50 | 21.50 | 1.17% | 25.43 | 24.30 |
11.5%
|
1852.00 | 1830.50 | 36.4 | ▼ Bear |
| 4 | INDUSTOWERTOP | 387.95 | +4.29% | — | 390.85 | 372.00 | 18.85 | 4.86% | 7.22 | 7.19 |
-162.2%
|
390.85 | 372.00 | 58.6 | — Neut |
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.