Narrow range patterns come from Tony Crabbel’s book, ” Day Trading with Short Term Price Patterns & Opening Range Breakout“. The NR4 (Narrow Range 4) and NR7 (Narrow Range 7) patterns are quite popular with short-term traders. An NR4 pattern would be the narrowest range in four days, while an NR7 would be the narrowest range in seven days.
Studies and Statistics from Bulkowski:
Last time I ran this screen, January 2, 2014. Compare HERE!