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 | 1910.80 | +1.92% | NR7 | 1878.80 | 1861.80 | 17.00 | 0.91% | 35.12 | 34.10 |
50.1%
|
1878.80 | 1861.80 | 71.8 | ▲ Bull |
| 2 | IDEATOP | 14.92 | -0.60% | — | 15.16 | 14.83 | 0.33 | 2.21% | 0.44 | 0.57 |
42.1%
|
15.16 | 14.83 | 62.3 | ▲ Bull |
| 3 | INDUSTOWERTOP | 411.20 | -0.75% | — | 417.80 | 409.50 | 8.30 | 2.02% | 8.94 | 8.70 |
4.6%
|
417.80 | 409.50 | 27.2 | ▼ Bear |
| 4 | TATACOMMTOP | 1988.80 | +2.41% | — | 2016.50 | 1921.00 | 95.50 | 4.80% | 74.45 | 67.37 |
-41.8%
|
2016.50 | 1921.00 | 55.3 | ▲ 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.