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 | IDEATOP | 14.03 | -0.28% | NR7 | 14.19 | 13.93 | 0.26 | 1.85% | 0.58 | 0.60 |
56.7%
|
14.19 | 13.93 | 67.6 | ▲ Bull |
| 2 | BHARTIARTLTOP | 1941.70 | +1.02% | NR7 | 1952.20 | 1933.00 | 19.20 | 0.99% | 38.50 | 39.53 |
51.4%
|
1952.20 | 1933.00 | 44.5 | — Neut |
| 3 | TATACOMMTOP | 1677.70 | +1.07% | — | 1704.10 | 1670.50 | 33.60 | 2.00% | 43.40 | 45.02 |
25.4%
|
1704.10 | 1670.50 | 34.7 | ▼ Bear |
| 4 | INDUSTOWERTOP | 368.80 | -0.97% | — | 373.85 | 367.35 | 6.50 | 1.76% | 6.97 | 8.07 |
19.5%
|
373.85 | 367.35 | 33.9 | ▼ 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.