What is Trading range?
A period where price stays between a support and a resistance level.
Ranges are the default state of many markets: buyers and sellers agree on a value area and the price oscillates inside it. Trends are the exception.
Ranges compress volatility, which can make a model's bands look narrower right before a breakout.
Related terms
- SupportTechnical analysis
A price area where buying has repeatedly absorbed selling, so declines have stalled there.
- ResistanceTechnical analysis
A price area where selling has repeatedly capped rallies.
- BreakoutTechnical analysis
A move out of a range or technical level, often on rising volume.