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 | GODREJPROPTOP | 1795.90 | -0.79% | NR7 | 1800.60 | 1778.10 | 22.50 | 1.25% | 52.15 | 49.50 |
54.5%
|
1800.60 | 1778.10 | 59.8 | ▲ Bull |
| 2 | OBEROIRLTYTOP | 1683.50 | -0.63% | NR4 | 1694.00 | 1665.40 | 28.60 | 1.70% | 42.12 | 39.20 |
27.0%
|
1694.00 | 1665.40 | 55.2 | ▲ Bull |
| 3 | DLFTOP | 624.50 | -2.53% | — | 639.00 | 619.65 | 19.35 | 3.10% | 19.71 | 18.80 |
-2.9%
|
639.00 | 619.65 | 62.8 | ▲ 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.