Investor Glossary-range-bound tradingInvestor Glossary-range-bound tradingInvestor Glossary-range-bound tradingInvestor Glossary-range-bound tradingInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Range-bound Trading

The HTML to link to this page

Range-bound trading is a purely technical method of predicting a stock's short-term highs and lows. Range-bound trading stocks are stocks which are trading in a defined channel. Simply put, a range-bound trading analyst looks for stocks with a clear support and resistance level. The range-bound trading analyst then buys at the support and sells at the resistance. The simplest way for a range-bound trading analyst to create a channel is to connect a number of high chart points as well as a number of low chart points. The resulting channel is the range within which the range-bound trading analyst operates. A range-bound trading strategy requires fairly constant monitoring of the stock due to the fact that when a stock breaks out of a range it may make a dramatic and sudden price move.

Rate this range-bound trading definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: APR, required rate of return, in escrow, per diem, stock split, cancelled check, labor relations, liquidity ratio, inflation, 401a, limit order, risk management, Key Rate Duration, retained earnings, FICO score, quality assurance, 144a, real GDP, command economy, dividends payable, deferred revenue, class C shares, stock market close, deferred tax, balance sheet, reverse mortgage, phantom income, ex-dividend, option premium, LIBOR, annual return, debt service coverage, open position, 1035 exchange, current ratio, EBITDA, implied volatility, average price per share, wholly-owned subsidiary, Zero Cost Collar, irrevocable trust, ex-dividend date, FTSE, diluted share, covered put, minority interest, VIX, 1031 exchange, margin rate

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use