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trading range

definition

The upper and lower price boundaries for trading during a specific period of time. Some technicians interpret a breakout from a trading range as a buy or sell signal. After a breakout, the trading range becomes either support or resistance for future price movement. See Congestion.

Related Terms

 • support  • long-legged doji  • price bar  • sideways market  • stop limit order  • flat market  • resistance  • stochastic oscillator
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