This past week, the S&P 500 had its narrowest range in at least six months…

The NR7 is a chart pattern based on candlesticks.  NR7 means that the last bar has the narrowest price range of the last 7 candlesticks.  The NR7 pattern shows when a stock’s price displays a short-term pattern of decreasing volatility.  In this way NR7 is like a triangle chart pattern, but with more emphasis on the volatility, and less emphasis on the specific shape or direction.  In either case the common assumption is that volatility is like a spring.  When you push in on it, it has to pop back out.  The longer and harder you push, the more explosive the final reaction will be. The NR7 pattern does not, by itself, predict which direction a stock will move.  People use it instead to predict which stocks are likely to make a large price move. – http://www.trade-ideas.com/Help.html