Satya, This is where reality of market comes in place and we have to use our judgement. In above range sequence, 4th August is still NR6 day. If you use the judgement and try to look beyond exact range of 28th July, this gives a NR-10 signal. So without getting lost in the numbers x of NRx setup, I would still call it contraction day and get ready to face expansion. (if you noticed 26/July, 29th July range, it is almost double of previous NR7 day range. Too me, this stock/index looks real juicy fruit to day trade after NR7. It gives real nice move on next day)
If you look at average range of last 10 days then on 4th Aug, it was 105 points. So 80 points range of the day is almost75% of the average daily range. Which is good enough for classification as contraction range. I use the range of 80% of average as signal for contraction. That helps in smoothening the effect one-off data point. So if you are programming any indicator then instead of going by exact day range, I would suggest to take 10 days (or any other number) average range.. and If today’s range is <80% of this average range, then trigger the signal.
Hope this helps.
By the way, we had NR6 on Nifty yesterday, Prev day was NR5 and we have seen the nice range of 150+ points today..
Happy Trading