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 | 1920.90 | +0.00% | NR7 | 1836.30 | 1762.10 | 74.20 | 4.19% | 77.80 | 78.20 |
5.1%
|
1836.30 | 1762.10 | 50.0 | — Neut |
| 2 | HDFCLIFETOP | 614.35 | +0.00% | — | 603.15 | 585.60 | 17.55 | 2.98% | 13.57 | 13.13 |
-33.7%
|
603.15 | 585.60 | 50.0 | — Neut |
| 3 | ICICIGITOP | 1841.83 | +0.00% | — | 1819.30 | 1765.00 | 54.30 | 3.06% | 35.10 | 37.10 |
-46.4%
|
1819.30 | 1765.00 | 57.4 | — Neut |
| 4 | ICICIPRULITOP | 551.64 | +0.00% | — | 534.95 | 511.50 | 23.45 | 4.56% | 11.86 | 10.58 |
-121.6%
|
534.95 | 511.50 | 100.0 | — 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.