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 | BHARTIARTLTOP | 1962.00 | -0.51% | NR7 | 1977.40 | 1943.20 | 34.20 | 1.73% | 52.90 | 50.62 |
32.4%
|
1977.40 | 1943.20 | 72.7 | ▲ Bull |
| 2 | IDEATOP | 11.77 | -2.89% | — | 12.13 | 11.78 | 0.35 | 2.89% | 0.50 | 0.55 |
36.4%
|
12.13 | 11.78 | 33.7 | ▼ Bear |
| 3 | TATACOMMTOP | 1671.20 | -2.23% | — | 1717.80 | 1645.00 | 72.80 | 4.26% | 60.05 | 60.10 |
-21.1%
|
1717.80 | 1645.00 | 52.4 | ▼ Bear |
| 4 | INDUSTOWERTOP | 379.05 | -1.29% | — | 384.00 | 370.00 | 14.00 | 3.65% | 10.71 | 10.55 |
-32.7%
|
384.00 | 370.00 | 48.1 | ▼ 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.