Range Bound Trading: Definition and Overview

You will often hear traders use the term trading range, when referring to either an entry or exit point of when to buy or sell a stock. What they mean by the trading range is the high and low price over a certain time period. The bottom end of the range is a support price, and when traders would want to purchase securities. The upper end of the range is a resistance level and where traders would want to sell securities. A strategy that follows this technique of trading is called range bound trading. Below is an example of a trading range from Investopedia: In order to confirm support and resistance levels traders will usually use som


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