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 | SBILIFETOP | 1856.60 | +0.89% | NR4 | 1861.00 | 1832.10 | 28.90 | 1.56% | 57.17 | 44.80 |
35.5%
|
1861.00 | 1832.10 | 59.5 | — Neut |
| 2 | HDFCLIFETOP | 564.70 | +1.71% | — | 577.00 | 563.00 | 14.00 | 2.44% | 14.24 | 13.75 |
-1.8%
|
577.00 | 563.00 | 29.8 | ▼ Bear |
| 3 | ICICIPRULITOP | 511.55 | +1.51% | — | 527.50 | 506.50 | 21.00 | 4.04% | 14.95 | 14.62 |
-43.6%
|
527.50 | 506.50 | 52.8 | — Neut |
| 4 | ICICIGITOP | 1806.40 | +1.02% | — | 1812.80 | 1745.20 | 67.60 | 3.78% | 39.62 | 33.43 |
-102.2%
|
1812.80 | 1745.20 | 40.5 | — 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.