Glossary

Range

A period when price oscillates between an upper and a lower boundary without finding direction. The boundaries accumulate liquidity and produce a breakout or a false breakout.

Mean reversion strategies work inside a range, and momentum strategies work on a breakout; using the same strategy in both regimes is the most common cause of lost performance.

The Asian session range is often used as a breakout reference at the London/New York open.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.