Market structure
Range
Price moves sideways between a floor and a ceiling.
Practitioner rule, no published test found
Widely taught. The Exchange can test it on public price history and will say what it finds.
Common teaching, no published test found.
What it is
A range needs at least two touches of each boundary. Traders act at the edges, wait for a break and a retest, or trade a failed break. Boundaries are usually zones, not exact lines.
What it suggests
Inside a range, no side is in control. A break ends the range, and many breaks fail.
How to check it
Confirm two touches each side and mark the boundaries as zones.
Common mistakes
- Trading the middle of a range.
- Entering a break before it closes outside.
Related lessons
Written in our own words. Education only, not financial advice.