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Narrow Range 4 / NR 4 Scanner



Narrow Range 4 (NR4) Scanner

What is Narrow Range 4 (NR4)?

Narrow Range 4 (NR4) is a volatility contraction pattern where the current candle has the smallest high-to-low trading range compared to the previous four candles. It indicates reduced market volatility and often precedes a significant price expansion. Traders monitor NR4 setups for potential breakout opportunities in either direction.

How the NR4 Pattern Forms

  • The market experiences normal price fluctuations over several candles.
  • The latest candle records the narrowest trading range among the last four candles.
  • The shrinking range reflects reduced volatility and temporary market indecision.
  • Buyers and sellers remain in balance as the price consolidates.
  • A breakout above the high or below the low of the NR4 candle often signals the next directional move.

Trading Strategy

  • Monitor the high and low of the NR4 candle for potential breakout levels.
  • Enter a trade only after a confirmed breakout in either direction.
  • Many traders place a stop-loss on the opposite side of the NR4 candle.
  • Use volume and trend confirmation indicators to improve the reliability of breakout signals.

Advantages

  • Helps identify periods of low volatility before strong price movements.
  • Provides clearly defined breakout and stop-loss levels.
  • Can capture both bullish and bearish breakout opportunities.
  • Suitable for swing, and positional trading across multiple timeframes.

TSR Scanner Features

  • Real-Time Alerts: Set up alerts to get notified exactly as the condition meets.
  • Fine-Tune Filter: Combine with volume and TSR strength index for better accuracy.
  • Custom Tracking: Filter signals based on specific stock baskets or your personalized watchlist.
  • Backtesting Capabilities: Evaluate historical data to gain confidence.
  • Flexible Timeframes: Filter intervals from 1-minute to monthly ticks.
  • Auto Refresh: Keeps your scanner data continuously updated.

Fine Tune : You can customise these screeners by clicking on 'Fine Tune Filter' Option

Caution : All these screeners are crafted based on some historical scenarios which may / may notbe applicable here. We recommend to fine tune them according to current market conditions or seek expert advise before taking any decision.
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