What is NR7 pattern (Narrow Range 7) ?

[dimpy.handa]

Market goes thru regular contraction (i.e. daily trading range getting shorter and shorter) and expansion (i.e. daily trading range getting bigger) cycle. Expanding range is followed by Contraction and vice-versa. So if we can indetify the narrow range days, then it give us a step ahead of everybody to benefit from coming expansion.

NR7 is term given to a day that has the daily range smallest of last 7 days including that day.

NR4 is variation of this where the lookback period is 3 days + current day i.e. 4 days.

 

[pranavdash]

NR7 is a chart copy based on traditional candlesticks. NR7 effectuation that the net candlestick has the narrowest damage orbit of the ultimate 7 candlesticks.The NR7 pattern does not, by itself, predict which direction a stock will move.People use it to predict which stocks are likely to make a large price move.