Definition of Trading range:
When a stock breaks through or falls below its trading range, it usually means there is momentum (positive or negative) building. A breakout occurs when the price of a security breaks above a trading range, while a breakdown happens when the price falls below a trading range. Typically, breakouts and breakdowns are more reliable when they are accompanied by a large volume, which suggests widespread participation by traders and investors.
Commodities trading: Minimum and maximum limit set by the exchange within which the price of a particular commodity can fluctuate during a trading day.
A trading range occurs when a security trades between consistent high and low prices for a period of time. The top of a security’s trading range often provides price resistance, while the bottom of the trading range typically offers price support.
Securities trading: Spread between the high and low prices at which a security has traded during a specified period.
How to use Trading range in a sentence?
- Each trading range has a support price, a price at which traders purchase the security, and a resistance price, a price at which they sell the security.
- A trading range occurs when a security trades between consistently high and low prices for a certain period of time.
- Traders use a variety of indicators, such as volume and price action, in order to enter or exit a trading range.
Meaning of Trading range & Trading range Definition