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 | POWERGRIDTOP | 283.60 | +1.39% | NR7 | 283.80 | 281.35 | 2.45 | 0.87% | 4.35 | 4.58 |
46.5%
|
283.80 | 281.35 | 34.2 | ▼ Bear |
| 2 | LTTOP | 3948.10 | +1.44% | NR7 | 3953.80 | 3905.00 | 48.80 | 1.24% | 79.83 | 82.05 |
40.5%
|
3953.80 | 3905.00 | 22.9 | — Neut |
| 3 | LTFTOP | 322.00 | +2.45% | — | 328.75 | 319.00 | 9.75 | 3.04% | 12.88 | 11.25 |
13.3%
|
328.75 | 319.00 | 71.2 | ▲ Bull |
| 4 | ADANIPORTSTOP | 1829.90 | +2.13% | — | 1852.90 | 1800.10 | 52.80 | 2.89% | 42.23 | 39.58 |
-33.4%
|
1852.90 | 1800.10 | 49.0 | ▲ Bull |
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.