What is a 'Trading Range'
A trading range is the spread between the high and low prices traded during a period of time.
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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.
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RELATED FAQS
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What types of stocks have a small difference between bid and ask prices?
Learn more about bid-ask spreads and why stocks with high levels of liquidity and low levels of volatility usually have narrow ... Read Answer >> -
What are the determinants of a stock's bid-ask spread?
Stock exchanges are set up to assist brokers and other specialists in coordinating bid and ask prices. The bid price is the ... Read Answer >> -
What number of shares determines adequate liquidity for a stock?
Learn how the liquidity of a company's shares is generally affected by bid-ask spread and trading volume of shares bought ... Read Answer >>