Range
A market bounded between a clear high and low, with no directional trend.
Also called: trading range · sideways market
In plain language
A range forms when buyers reliably defend a floor and sellers reliably defend a ceiling. Price oscillates between them.
Ranges reward the opposite behavior from trends. Buying weakness at the low and selling strength at the high works here and fails badly once the range breaks.
Every range eventually ends. The break is often violent because stops accumulate on both sides of the boundaries.
Why it matters
Identifying a range tells you which playbook applies, and the boundaries provide clean, close invalidation levels for either side.
Common mistakes
- Applying trend-following rules inside a range and taking repeated small losses.
- Assuming the boundary will hold on every touch. Each test weakens it.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
A period where price moves sideways in a narrow range without clear direction.
A price area where buying has repeatedly been strong enough to stop a decline.
A price area where selling has repeatedly been strong enough to stop an advance.
When price moves decisively beyond an established support or resistance level.
A move beyond a key level that quickly reverses back inside the prior range.