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 | IGLTOP | 151.89 | -0.77% | NR7 | 154.50 | 152.60 | 1.90 | 1.24% | 3.67 | 3.44 |
44.8%
|
154.50 | 152.60 | 21.2 | ▼ Bear |
| 2 | GAILTOP | 171.51 | -0.93% | NR4 | 173.40 | 170.53 | 2.87 | 1.66% | 4.02 | 3.45 |
16.8%
|
173.40 | 170.53 | 44.1 | — Neut |
| 3 | MGLTOP | 1119.00 | +0.41% | — | 1128.10 | 1105.00 | 23.10 | 2.07% | 28.98 | 28.60 |
19.2%
|
1128.10 | 1105.00 | 31.3 | — Neut |
| 4 | GUJGASLTDTOP | 327.05 | +1.13% | — | 290.70 | 273.00 | 17.70 | 6.11% | 7.94 | 10.86 |
-63.0%
|
290.70 | 273.00 | 14.1 | — 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.