ChalniTry the demo

Candles scan

NR7 Screener

This scan finds stocks where today's high-low range is the narrowest of the last 7 days (an NR7 day), while the price is above the 200-day moving average.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: nr7 and close above 200 day sma

  1. NR7 day
  2. Close > SMA(200)

Find US stocks where today shows an NR7 day (narrowest range in 7 days); and the closing price is above the 200-day simple moving average.

Formula view
pattern(nr7)
AND close > sma(close, 200)
Example chart: NR7 squeeze in an uptrendDaily candles of a made-up sample stock with 200-day SMA. The shaded day is the day the scan fired.
  • 200-day SMA
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

NR7 was made popular by Toby Crabel in his 1990 book on short-term price patterns and opening range breakouts. The idea: markets move in cycles of quiet days and active days, and a very narrow day is often followed by a wider one.

Chalni's exact rule: today's range (high minus low) is smaller than the range of each of the previous 6 days. The 200-day rule keeps the scan on stocks in a long-term uptrend.

How traders use it

  • Traders often buy a break above the NR7 day's high and place a stop below its low.
  • An NR7 day that is also an inside bar is an even tighter setup.
  • NR7 says a bigger move may come, not which way. The trend filter picks a side.

Watch out for

  • The bigger move can go down as well as up.
  • Stocks that hardly trade often have narrow days simply because nobody is trading them.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What does NR7 mean in trading?

NR7 stands for "narrow range 7": the day with the smallest high-low range of the last seven days.

What is the difference between NR4 and NR7?

NR4 is the narrowest range of the last 4 days; NR7 of the last 7. NR7 is rarer and points to a deeper quiet period.

Related scans