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 | 1054.00 | +0.63% | NR7 | 1057.90 | 1040.50 | 17.40 | 1.65% | 21.90 | 21.60 |
19.4%
|
1057.90 | 1040.50 | 46.5 | — Neut |
| 2 | IGLTOP | 143.06 | -1.43% | — | 145.28 | 142.75 | 2.53 | 1.77% | 3.12 | 4.34 |
41.7%
|
145.28 | 142.75 | 48.5 | ▼ Bear |
| 3 | GAILTOP | 168.10 | -0.74% | — | 169.48 | 166.65 | 2.83 | 1.68% | 3.10 | 3.15 |
10.2%
|
169.48 | 166.65 | 39.6 | ▼ Bear |
| 4 | GUJGASLTDTOP | 229.77 | -3.70% | — | 239.89 | 229.50 | 10.39 | 4.52% | 7.96 | 7.58 |
-37.1%
|
239.89 | 229.50 | 29.0 | ▼ Bear |
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.