What is a 'Trading Range'

A trading range is the spread between the high and low prices traded during a period of time.

BREAKING DOWN 'Trading Range'

When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building.

RELATED TERMS
  1. Range

    A stock's low and high prices for a particular trading period, ...
  2. Spread

    1. The difference between the bid and the ask price of a security ...
  3. Spread Indicator

    An indicator that shows the difference between the bid and ask ...
  4. Opening Range

    The highest and lowest prices of a security during the first ...
  5. Closing Range

    The band of prices that a security trades at in a specified period, ...
  6. Reduced Spread

    A reduction in the spread between the buy/bid and sell/ask price ...
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RELATED FAQS
  1. What types of stocks have a large difference between bid and ask prices?

    Find out which factors influence bid-ask spread width. Learn why some stocks have large spreads between bid and ask prices, ... Read Answer >>
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    Learn how financial spread betting is done, and see examples of some of the ways that investors can use spread betting as ... Read Answer >>
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