Range
A sideways price structure bounded by identifiable support and resistance where neither buyers nor sellers dominate.
A range forms when price oscillates between a ceiling (resistance) and a floor (support) without making sustained new highs or lows. It signals equilibrium — balanced supply and demand.
Range traders buy the support extreme and sell the resistance extreme, keeping stops outside the range. Trend traders watch ranges for the eventual breakout that resolves the stalemate. Volume typically contracts inside a range and expands on the breakout.
Example
TSLA chops between $240 support and $260 resistance for three weeks. A range trader sells at $258–260 with a stop above $263 and buys at $241–243 with a stop below $237.
Related Terms
Accumulation
A period where informed buyers are quietly building positions without driving price significantly higher — a potential precursor to an uptrend.
AdvancedBreakdown
Price moving decisively below key support, signalling that sellers have overwhelmed buyers at that level.
BeginnerBreakout
Price moving decisively above a key resistance level or the top of a range, often on expanding volume.
BeginnerChannel
Two parallel trendlines containing price action — an upper resistance line and a lower support line defining the trend's corridor.
BeginnerConsolidation
A period of tight, low-volatility price action — typically a pause within a trend before the next directional move.
BeginnerFalse Breakout
A breakout that fails: price pushes past a key level, fails to follow through, then snaps back inside the range — trapping breakout traders.
IntermediateResistance
A price level where selling pressure has historically halted or reversed an upward move.
BeginnerSupport
A price level where buying pressure has historically halted or reversed a downward move.
Beginner