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


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