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 | 1760.00 | +0.53% | NR7 | 1758.20 | 1732.20 | 26.00 | 1.49% | 38.73 | 50.25 |
48.3%
|
1758.20 | 1732.20 | 52.8 | ▲ Bull |
| 2 | LTTOP | 3653.90 | +0.74% | NR7 | 3670.00 | 3608.00 | 62.00 | 1.71% | 89.17 | 88.95 |
30.3%
|
3670.00 | 3608.00 | 41.3 | ▼ Bear |
| 3 | POWERGRIDTOP | 250.45 | +0.24% | — | 253.25 | 247.05 | 6.20 | 2.48% | 4.15 | 5.15 |
-20.4%
|
253.25 | 247.05 | 31.9 | ▼ Bear |
| 4 | LTFTOP | 252.15 | -0.67% | — | 264.00 | 246.50 | 17.50 | 6.89% | 7.04 | 6.99 |
-150.4%
|
264.00 | 246.50 | 25.1 | ▼ 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.