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 | MGLTOP | 1209.00 | -0.14% | — | 1223.00 | 1200.10 | 22.90 | 1.89% | 34.60 | 33.13 |
30.9%
|
1223.00 | 1200.10 | 74.4 | ▲ Bull |
| 2 | IGLTOP | 167.60 | -1.41% | — | 170.33 | 166.55 | 3.78 | 2.26% | 4.52 | 4.26 |
11.3%
|
170.33 | 166.55 | 56.0 | ▲ Bull |
| 3 | GAILTOP | 173.90 | -1.44% | — | 177.00 | 173.51 | 3.49 | 1.98% | 3.85 | 3.64 |
4.1%
|
177.00 | 173.51 | 70.0 | ▲ Bull |
| 4 | GUJGASLTDTOP | 388.45 | -2.81% | — | 397.10 | 385.05 | 12.05 | 3.10% | 10.51 | 11.43 |
-5.4%
|
397.10 | 385.05 | 44.6 | — 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.