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.
NR7 stands for “Narrow Range.” As the name tells us, the NR7 strategy is used to recognize stocks where the range is narrowing, and the current day range is smallest than the last seven days’ ranges.
NR4 stands for “Narrow Range.” As the name tells us, the NR4 scanner is used to recognize stocks where the range is narrowing, and the current day range is smaller than the last four days’ ranges.
At the End of day analysis, the Nr4-Nr7 screener lists down stocks that are trading in the narrowest range for the last 4,7, and 9 days.
How to use NR4 and NR7 Scanner
The NR4/ NR7 stocks can be used to find the stocks that were in the NR breakout list at the end of the day which helps for the next trading day.
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