The NR7 (Narrow Range 7) pattern is a powerful volatility compression setup that often precedes explosive breakouts. Using the NR7 compression screener on NSE stocks helps traders identify when price action tightens before a directional move. This guide explains how to combine NR7 with volume and momentum filters for reliable breakout signals.

Narrow Range Days

<1.5%

Daily Range Threshold

70%

Breakout Probability (with volume)

2:1

Risk-Reward Target

Why NR7 Matters for NSE Traders

NR7 compression indicates a temporary equilibrium between buyers and sellers, often leading to a sharp breakout. When combined with volume confirmation, it becomes a high-probability setup. For context, see our guide on volatility squeeze breakout strategies for Indian markets.

On the NSE, stocks like RELIANCE and TCS have shown NR7 patterns before major moves. The key is to filter for stocks with low ATR (Average True Range) relative to their 20-day average, ensuring the compression is genuine. This reduces false signals and improves trade timing.

📌 Key Insight
NR7 works best when combined with a volume spike on breakout day — look for volume at least 1.5x the 20-day average to confirm the move.

How to Use the NR7 Screener on NSE

Set the NR7 Condition — Configure the screener to show stocks where today's range is the smallest in the last 7 trading days. This is the core NR7 filter.

Add ATR Filter — Apply a filter for ATR(14) below 2% of the stock price to ensure the compression is meaningful and not just noise.

Check Volume Confirmation — Look for stocks with volume > 1.5x the 20-day average on the breakout day. This confirms institutional participation.

Use the NR7 Screener on QUANTSCASE — Navigate to the NR7 compression screener and apply the above filters. The tool automatically highlights stocks meeting the criteria.

Set Entry and Stop Levels — Enter on a close above the NR7 high with a stop at the NR7 low. Target 2x the range of the compression zone.

💡 Pro Tip
Combine NR7 with a rising 20-day EMA to ensure the breakout aligns with the prevailing trend. This increases the probability of a sustained move.

Key Indicators for NR7 Breakout Confirmation

Indicator	Threshold	Signal	Why It Matters
NR7 Pattern	Today's range < all prior 6 days	✅ Bullish	Indicates volatility compression — potential breakout setup.
Volume Ratio	> 1.5x 20-day average	✅ Bullish	Confirms institutional interest and breakout strength.
ATR(14)	< 2% of price	⚡ Watch	Ensures compression is significant; too wide may be noise.
20-day EMA	Price above EMA	❌ Bearish	Avoid if price is below EMA — trend is against you.

✅ NR7 Breakout Entry Checklist

✓Today's range is the smallest in 7 days (NR7 confirmed).

✓Volume on breakout day > 1.5x 20-day average.

✓Price closes above the NR7 high (entry trigger).

✓20-day EMA is sloping upward (trend alignment).

✗Avoid if the stock is in a clear downtrend or news-driven.

⚠️ Common Mistake
A common mistake is trading NR7 without volume confirmation — many false breakouts occur when volume is low. Always wait for the volume spike.

Try It on QUANTSCASE

Use the dedicated NR7 screener to find stocks in compression. For more advanced setups, explore our Keltner Squeeze screener for additional volatility-based signals.

NR7 Compression Screener →

Filters NSE stocks with the narrowest range in 7 days.

Keltner Squeeze Screener →

Identifies volatility squeezes using Bollinger Bands and Keltner Channels.

Start screening NSE stocks for NR7 patterns

Find NR7 Breakout Candidates Now

Try NR7 Screener — 1,800+ NSE Stocks

This guide is for educational purposes only and does not constitute financial advice. Always perform your own analysis before trading.