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 | OBEROIRLTYTOP | 1878.50 | +0.45% | — | 1925.00 | 1858.10 | 66.90 | 3.58% | 61.82 | 57.10 |
-17.2%
|
1925.00 | 1858.10 | 73.9 | ▲ Bull |
| 2 | DLFTOP | 659.60 | +4.04% | — | 664.85 | 630.75 | 34.10 | 5.38% | 17.95 | 20.22 |
-68.6%
|
664.85 | 630.75 | 55.3 | ▲ Bull |
| 3 | GODREJPROPTOP | 2030.30 | +2.57% | — | 2075.10 | 1972.40 | 102.70 | 5.19% | 42.95 | 54.40 |
-88.8%
|
2075.10 | 1972.40 | 74.9 | ▲ 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.