#what does it look like? This candlestick patterns required seven candlesticks. If the last candle has the smallest range out of the entire seven candles then it is called nr7. The range is defined as the difference between the high and low of the candle. #what does it mean? As the inside candle represents the decrease in the volatility in the same way NR7 candle indicates the decrease in volatility. NR7 does not have a specific trend, we can trade in either direction up or down. NR7 is a strong pattern indicating a decrease in volatility. As the market alternate between trend day and narrow day, the NR7 alert us to standby for an explosive move. #how can we trade it? We buy after a breakout candle closed above the high of the last candle in an uptrend. Sell after a breakout candle closed below the low of the last candle in a downtrend. #conclusion: In this blog we have discussed various candlestick patterns, a candlestick pattern is a base on any price action trading strategy as they pinpoint our entry, exit, and define stop loss. Although in this blog we have seen that candlestick is also used for spotting key reversal points in the on-going trend. For higher accuracy, it is advisable to spot such a candlestick near the support and resistance line. Once you get to read a candlestick pattern and to use a particular pattern in the trading strategy. Following a trading system would be easy as you can see the same pattern repeating itself over time.