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 | HAVELLSTOP | 1187.30 | +0.72% | NR4 | 1187.90 | 1161.60 | 26.30 | 2.23% | 40.90 | 32.43 |
18.9%
|
1187.90 | 1161.60 | 53.5 | — Neut |
| 2 | SIEMENSTOP | 3513.00 | +1.01% | — | 3498.00 | 3440.50 | 57.50 | 1.65% | 88.35 | 87.27 |
34.1%
|
3498.00 | 3440.50 | 36.2 | ▼ Bear |
| 3 | ABBTOP | 6910.00 | +1.51% | — | 6872.00 | 6715.50 | 156.50 | 2.30% | 159.50 | 175.83 |
11.0%
|
6872.00 | 6715.50 | 39.8 | — Neut |
| 4 | LTTSTOP | 3296.00 | -0.05% | — | 3329.00 | 3217.60 | 111.40 | 3.38% | 100.62 | 104.97 |
-6.1%
|
3329.00 | 3217.60 | 48.0 | — Neut |
| 5 | BHELTOP | 402.50 | -1.61% | — | 412.00 | 389.60 | 22.40 | 5.48% | 12.07 | 13.08 |
-71.3%
|
412.00 | 389.60 | 52.1 | ▲ 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.