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 | TATACOMMTOP | 1515.52 | +0.00% | — | 1595.00 | 1490.90 | 104.10 | 6.85% | 84.85 | 89.97 |
-15.7%
|
1595.00 | 1490.90 | 100.0 | — Neut |
| 2 | BHARTIARTLTOP | 1855.70 | +0.00% | — | 1850.70 | 1807.30 | 43.40 | 2.39% | 36.27 | 35.48 |
-22.3%
|
1850.70 | 1807.30 | 75.3 | — Neut |
| 3 | INDUSTOWERTOP | 413.81 | +0.00% | — | 406.60 | 395.65 | 10.95 | 2.72% | 6.12 | 6.53 |
-67.7%
|
406.60 | 395.65 | 100.0 | — Neut |
| 4 | IDEATOP | 9.55 | +0.00% | — | 9.63 | 9.37 | 0.26 | 2.73% | 0.13 | 0.14 |
-85.7%
|
9.63 | 9.37 | 30.0 | — 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.