What is NR4 NR7 Scanner

NR4 NR7 trading strategy is a trading strategy for Narrow range stock Breakouts. This is based on principle of Volatility Contraction is followed by Volatility Expansion. NR4 NR7 scanner helps to find the stocks where the End day was the Narrowest range of last 7 or 4 days

NR4 NR7 Scanner
NR4 NR7 Scanner – Intradayscreener.com

Toby Crabel popularized the concept of narrow range bars in his excellent book “Day Trading With Short-Term Price Patterns And Opening Range Breakout”. In this post, we’re going to discuss two types of Narrow range bar formations. This includes NR 4 and  NR7 Strategy, which is a Price Action-based trading strategy. Price Action Trading does not require any indicators, and it is based on the stock price.

What is Narrow Range Strategy?

Narrow Range Trading is a breakout based strategy that assumes that the stock price will move up or down after the stocks consolidate in the narrow range. The breakout may happen in either direction.

What is the NR7 Trading Strategy?

NR7
NR7 – intradayscreener.com

NR7 stands for “Narrow Range of seven days” As the name tells us, this strategy is used to recognize stocks where the range is narrowing, and the current day range is the smallest than the last seven days ranges. NR 7 is a breakout based strategy that assumes that the stock price will move up or down after the stocks consolidate in the narrow range. The breakout may happen in either direction.

NR7 candlestick pattern is composed of seven candles. The current day candle should have a lower price range than the last six days candles, then it is considered as NR7. In the below image, you can clearly see that the seventh bar has a shorter range than the last six days candles. We can clearly say that NR4 is formed. 

In a simple way, to confirm NR7 stocks, you have to check the last six days’ price range. Then you have to observe that the last six days candles range should be more than the current day range, then the pattern is considered as NR7.

In the NR7, the breakout happens when the stock price is above the top or below the bottom of the NR7 candle. If the breakout occurs at the top of NR 7 candle, then it indicates a bullish market, and in the same way, if the breakout occurs at the lower side of NR7 candle, then it indicates the market is bearish.

How to find NR7 Day?

  • Collect the high and low data of the last seven days
  • Find the range of every candle
  • Examine current day candle range with the last six days candles
  • If the current day candlestick price range is less than the last six days, then it is NR7 or else it is not an NR7 candlestick pattern.
  • After confirming NR7 pattern, traders can take buy position when the current bar is moving up and in the same way, when the current bar is moving down then traders can sell their position
NR7 Breakout

Example of NR7 Trading Strategy

The below example is PVR LTD. We can clearly say that the current day’s candle range is smaller than the last 7 days. If the Break out happens above the last candle, it is considered as a bullish market, and the breakout below the candle is considered a bearish market.

What is the NR4 Trading Strategy?

NR4

NR4 stands for “Narrow Range of four days” As the name tells us, this strategy is used to recognize stocks where the range is narrowing, and the current day range is smaller than the last four days’ ranges. NR 4 is a breakout based strategy that assumes that the stock price will move up or down after the stocks consolidate in the narrow range. The breakout may happen in either direction.

This candlestick pattern is composed of four candles. The current day candle should have a lower price range than the last three candles, then it is considered as NR4. In the below image, you can clearly see that the fourth bar has a shorter range than the last three days candles. We can clearly say that NR4 is formed. 

In a simple way, to confirm NR4 stocks, you have to check the last four days range. Then you have to observe that the last three days candles range should be more than the current day range, then the pattern is considered as NR4.

In the NR4, the breakout happens when the stock price is above the top or below the bottom of the NR4 candle. If the breakout occurs at the top of NR 4 candle, then it indicates a bullish market, and in the same way, if the breakout occurs at the lower side of NR4 candle, then it indicates the market is bearish. Bar Range is nothing but the difference between the bar high and bar low.

How to Find NR4 Day?

  • Collect the high and low data of the last four days
  • Find the range of every candle
  • Examine current day candle range with the last three days candles.
  • If the current day candlestick price range is less than the last three days, then it is considered as NR4, or else it is not an NR4 candlestick pattern.
  • After confirming the NR4 pattern, traders can take buy positions when the current bar is moving up after breakout and in the same way, when the current bar is moving down then traders can sell their position.

Example of NR4 Trading strategy

The below example is PVR LTD. We can clearly say that the current day’s candle range is smaller than the last three days. If the Break out happens above the last candle, it is considered a bullish market, and the breakout below the candle is considered as bearish market.

NR4 NR7 Scanner

How to find NR4/Nr7 EOD scanner – 

You can find the NR4/Nr7 EOD scanner online very easily by using Intradayscreener.com. However, make sure you use this NR4/NR7 stock screener when the current day range is smaller than the last seven days or four days range.

NR4 NR7 EOD
NR4 NR7 – intradayscreener.com

NR4 NR7 live scanner

You can find the Live NR7/Nr4 Scanner online very easily by using Intradayscreener.com. However, make sure you use this screener when the current day range is smaller than the last seven days or four days range.

FAQs

What is nr4 and nr7 in the stock market?

NR4 pattern means the narrow range in four days, while the NR7 means the narrow range in seven days. Both of them are short-term candlestick patterns created based on the “opening range breakout.

What is narrow CPR?

Narrow CPR can be determined from the prior day high, low and close. If the average of CPR width is less than 70% from the last 20 days, it is considered as narrow CPR width. If the average of CPR is more than 120% from the last 20 days it is considered as broad CPR width.