Trading Range

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Dictionary Says

Definition of 'Trading Range'

The spread between the high and low prices traded during a period of time.
Investopedia Says

Investopedia explains '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 Definitions

  • Spread

    1. The difference between the bid and the ask price of a security or asset. 2. An options position established by purchasing one option and selling another option of the same class but ...
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  • Range

    A stock's low price and high price for a particular trading period, such as the close of a day's trading, the opening of a day's trading, a day, a month, or a year.
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  • Momentum

    The rate of acceleration of a security's price or volume. The idea of momentum in securities is that their price is more likely to keep moving in the same direction than to change ...
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    • Breakout

      A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility. Traders will buy the underlying asset when the ...
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    • Setup Price

      A price level predetermined as the point of entry into a specific security, stock, or currency. Once the setup price is broken the trader will enter the position determined by the setup. ...
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    • 52-Week Range

      The lowest and highest prices at which a stock has traded in the previous 52 weeks. The 52-week range is provided in a stock's quote summary along with information such as today's change ...
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    • Closing Range

      The band of prices that a security trades at in a specified period, shortly before market close. In the futures market, it refers to the trading range or the minimum and maximum prices ...
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    • Opening Range

      The highest and lowest prices of a security during the first few minutes of daily trading activity. Opening ranges are important to technical analysts and day traders, because they base ...
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