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 | 1703.00 | -0.29% | NR4 | 1720.60 | 1690.80 | 29.80 | 1.75% | 36.88 | 42.20 |
29.4%
|
1720.60 | 1690.80 | 22.4 | ▼ Bear |
| 2 | DLFTOP | 675.00 | +0.67% | NR4 | 680.85 | 668.00 | 12.85 | 1.90% | 15.84 | 16.49 |
22.1%
|
680.85 | 668.00 | 53.4 | ▲ Bull |
| 3 | GODREJPROPTOP | 1603.30 | -0.84% | — | 1623.40 | 1575.20 | 48.20 | 3.01% | 45.45 | 43.38 |
-11.1%
|
1623.40 | 1575.20 | 37.7 | ▼ Bear |
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.