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 | ADANIPORTSTOP | 1696.00 | +0.84% | NR7 | 1684.00 | 1667.00 | 17.00 | 1.01% | 31.05 | 33.02 |
48.5%
|
1684.00 | 1667.00 | 49.8 | ▼ Bear |
| 2 | LTTOP | 4081.00 | +0.98% | — | 4069.00 | 4024.80 | 44.20 | 1.09% | 53.95 | 52.82 |
16.3%
|
4069.00 | 4024.80 | 65.4 | ▲ Bull |
| 3 | LTFTOP | 314.75 | -0.21% | — | 327.00 | 312.75 | 14.25 | 4.52% | 10.59 | 9.25 |
-54.1%
|
327.00 | 312.75 | 52.6 | ▲ Bull |
| 4 | POWERGRIDTOP | 264.80 | +0.49% | — | 267.50 | 262.05 | 5.45 | 2.07% | 2.76 | 3.15 |
-73.0%
|
267.50 | 262.05 | 23.1 | ▼ 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.