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 | ADANIPORTSTOP | 1821.90 | +0.64% | NR7 | 1825.90 | 1807.10 | 18.80 | 1.04% | 49.38 | 41.30 |
54.5%
|
1825.90 | 1807.10 | 55.7 | ▲ Bull |
| 2 | LTTOP | 3848.70 | -2.03% | — | 3939.00 | 3875.60 | 63.40 | 1.61% | 79.15 | 73.85 |
14.2%
|
3939.00 | 3875.60 | 20.1 | ▼ Bear |
| 3 | POWERGRIDTOP | 286.15 | +0.05% | — | 286.45 | 281.65 | 4.80 | 1.68% | 4.15 | 4.12 |
-16.5%
|
286.45 | 281.65 | 39.4 | ▼ Bear |
| 4 | LTFTOP | 315.30 | -2.90% | — | 333.50 | 318.00 | 15.50 | 4.77% | 12.50 | 12.08 |
-28.3%
|
333.50 | 318.00 | 66.0 | ▲ 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.