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 | 1835.30 | -0.37% | — | 1849.50 | 1820.00 | 29.50 | 1.60% | 34.77 | 37.23 |
20.8%
|
1849.50 | 1820.00 | 60.5 | ▲ Bull |
| 2 | LTTOP | 4209.40 | +0.46% | — | 4244.90 | 4165.60 | 79.30 | 1.89% | 81.18 | 73.82 |
-7.4%
|
4244.90 | 4165.60 | 65.6 | ▲ Bull |
| 3 | POWERGRIDTOP | 292.25 | +1.23% | — | 289.45 | 283.30 | 6.15 | 2.13% | 4.78 | 4.83 |
-27.3%
|
289.45 | 283.30 | 60.1 | — Neut |
| 4 | LTFTOP | 286.50 | -0.14% | — | 295.90 | 284.60 | 11.30 | 3.94% | 9.16 | 8.35 |
-35.3%
|
295.90 | 284.60 | 60.8 | ▲ 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.