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 | 1800.20 | -0.41% | NR7 | 1816.40 | 1792.90 | 23.50 | 1.30% | 44.23 | 44.08 |
46.7%
|
1816.40 | 1792.90 | 47.6 | — Neut |
| 2 | HDFCLIFETOP | 591.85 | +0.09% | — | 592.20 | 581.80 | 10.40 | 1.76% | 13.79 | 13.70 |
24.1%
|
592.20 | 581.80 | 52.5 | — Neut |
| 3 | ICICIGITOP | 1870.10 | +1.69% | — | 1884.10 | 1818.70 | 65.40 | 3.50% | 42.95 | 41.52 |
-57.5%
|
1884.10 | 1818.70 | 67.2 | — Neut |
| 4 | ICICIPRULITOP | 500.30 | -4.18% | — | 523.90 | 502.95 | 20.95 | 4.01% | 11.84 | 11.35 |
-84.6%
|
523.90 | 502.95 | 54.7 | — 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.