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 | GAILTOP | 160.31 | +0.00% | NR7 | 166.30 | 163.35 | 2.95 | 1.78% | 3.64 | 3.72 |
20.7%
|
166.30 | 163.35 | 50.0 | — Neut |
| 2 | IGLTOP | 167.11 | +0.00% | — | 167.05 | 162.60 | 4.45 | 2.70% | 6.55 | 7.13 |
37.6%
|
167.05 | 162.60 | 60.1 | — Neut |
| 3 | MGLTOP | 1141.41 | +0.00% | — | 1154.90 | 1123.55 | 31.35 | 2.77% | 25.35 | 26.78 |
-17.1%
|
1154.90 | 1123.55 | 56.9 | — Neut |
| 4 | GUJGASLTDTOP | 385.96 | +0.00% | — | 391.50 | 374.85 | 16.65 | 4.34% | 8.40 | 8.65 |
-92.5%
|
391.50 | 374.85 | 50.0 | — 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.