Trading Range

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 Indicator

    An indicator that shows the difference between the bid and ask ...
  3. Closing Range

    The band of prices that a security trades at in a specified period, ...
  4. Profit Range

    A range of prices that an underlying security can possess in ...
  5. Ask

    The price a seller is willing to accept for a security, also ...
  6. Spread Option

    A type of option that derives its value from the difference between ...
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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 >>
  2. What are some examples of financial spread betting?

    Learn how financial spread betting is done, and see examples of some of the ways that investors can use spread betting as ... Read Answer >>
  3. What are the most common examples of Range-Bound Trading strategies?

    Learn some of the most common indicators and strategies that traders implement to generate profits from trading a range-bound ... Read Answer >>
  4. What's the difference between a credit spread and a debt spread?

    Learn about debit and credit option spread strategies, how these strategies are used, and the differences between debit spreads ... Read Answer >>
  5. What are the top technical indicators used for Range-Bound Trading strategies?

    Learn how to identify when a market is range bound and what some of the technical indicators are that work best for trading ... Read Answer >>
  6. How do I set a strike price in an options spread?

    Find out more about option spread strategies, and how to set the strike prices for bull call spreads and bull put spreads ... Read Answer >>
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