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 | BHARTIARTLTOP | 1936.50 | +1.82% | NR4 | 1917.00 | 1896.70 | 20.30 | 1.07% | 44.95 | 37.48 |
45.8%
|
1917.00 | 1896.70 | 56.0 | ▲ Bull |
| 2 | IDEATOP | 13.83 | -0.93% | — | 14.17 | 13.93 | 0.24 | 1.72% | 0.34 | 0.37 |
35.1%
|
14.17 | 13.93 | 37.4 | — Neut |
| 3 | INDUSTOWERTOP | 405.25 | -1.05% | — | 411.15 | 401.60 | 9.55 | 2.33% | 12.76 | 11.32 |
15.6%
|
411.15 | 401.60 | 54.6 | — Neut |
| 4 | TATACOMMTOP | 1850.00 | +0.80% | — | 1895.90 | 1829.40 | 66.50 | 3.62% | 50.30 | 52.70 |
-26.2%
|
1895.90 | 1829.40 | 20.6 | — 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.