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 | ICICIGITOP | 1680.10 | -0.67% | NR4 | 1703.10 | 1660.20 | 42.90 | 2.55% | 69.67 | 66.23 |
35.2%
|
1703.10 | 1660.20 | 64.0 | ▲ Bull |
| 2 | SBILIFETOP | 1656.80 | -0.30% | — | 1678.70 | 1637.30 | 41.40 | 2.50% | 35.75 | 40.75 |
-1.6%
|
1678.70 | 1637.30 | 34.9 | ▼ Bear |
| 3 | ICICIPRULITOP | 445.00 | -0.89% | — | 451.30 | 435.20 | 16.10 | 3.62% | 12.53 | 11.86 |
-35.8%
|
451.30 | 435.20 | 35.8 | ▼ Bear |
| 4 | HDFCLIFETOP | 553.00 | +0.45% | — | 554.75 | 532.60 | 22.15 | 4.01% | 13.56 | 12.77 |
-73.5%
|
554.75 | 532.60 | 57.6 | — 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.