What Is NRB (Narrow Range Bar)?

The Narrow Range Bar (NRB) is the opposite of WRB. It represents the smallest price range within a set number of bars (usually three or more). NRB setups are useful because they often precede strong moves either up or down.

NRB Trading Strategy Overview

• NRB often signals an upcoming breakout or breakdown
• Common strategy: take long positions when NRB forms above moving averages like the 100, 200, or 250 SMA
• Short positions preferred when NRB forms below these moving averages
• Uses Average True Range (ATR) to set stops and targets

Traders multiply ATR values by factors (1, 2, or 3) to set profit targets and stop losses. The ATR setting depends on the chart timeframe (e.g., 10 or 20 for daily charts).

Practical Tips for Using WRB and NRB

• Use WRB to understand supply and demand shifts, improving trade management.
• Combine NRB signals with trend indicators like EMA or pivot levels for better entry timing.
• Adjust ATR and EMA settings based on your trading timeframe—daily, weekly, or monthly charts.
• Always use WRB and NRB within the context of your overall trading plan and signals.

Summary

WRB and NRB candles are powerful tools to analyze market volatility and predict potential price moves. Neither should be used in isolation but integrated with other technical signals and analysis methods to improve trading outcomes. Enhance your trading skills and strategies by leveraging these concepts with PROP365. Try PROP365 today and gain an edge in the markets.