Trading range
Also called: sideways market, range-bound, consolidation
A period in which prices move sideways between roughly stable highs and lows, without a clear trend.
In a range, swing highs and lows stay roughly level. Trend-following indicators such as moving-average crossovers tend to give many false signals in ranges.
Learn more in these lessons
- Trends and market structureHow do you tell whether a share is in an uptrend, a downtrend or a range?
- Moving averagesHow are moving averages calculated, and what do they really tell you?
- The stochastic oscillatorHow does the stochastic oscillator work, and when does it mislead?
- Continuation patternsWhat are continuation patterns, and what can they tell you?
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