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 | TATACOMMTOP | 1739.50 | -2.02% | — | 1799.90 | 1751.70 | 48.20 | 2.72% | 81.20 | 67.72 |
28.8%
|
1799.90 | 1751.70 | 21.6 | — Neut |
| 2 | INDUSTOWERTOP | 387.40 | -1.82% | — | 396.10 | 385.15 | 10.95 | 2.77% | 9.97 | 9.33 |
-17.4%
|
396.10 | 385.15 | 53.5 | ▼ Bear |
| 3 | BHARTIARTLTOP | 1905.30 | +0.37% | — | 1905.00 | 1878.00 | 27.00 | 1.42% | 23.55 | 22.62 |
-19.4%
|
1905.00 | 1878.00 | 46.3 | — Neut |
| 4 | IDEATOP | 13.06 | -0.53% | — | 13.18 | 12.76 | 0.42 | 3.20% | 0.33 | 0.31 |
-35.5%
|
13.18 | 12.76 | 30.4 | — 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.