Technical AnalysisBeginner
A range is when price moves sideways between a clear support level below and a resistance level above, without trending up or down. Range traders buy near support and sell near resistance, with a stop loss just outside the range. When price finally closes outside the range, often on higher volume, it is called a breakout and can start a new trend. Range can also mean the gap between the high and low of a period, which is what the ATR indicator measures.
Related terms: Support Resistance Consolidation Breakout Channel ATR (Average True Range)