A sideways period where price oscillates between a roughly horizontal high and low without making a lasting new swing in either direction.
How traders use it: Range edges become reference levels. Traders either fade the edges, wait for a breakout, or watch for a sweep of one edge that fails (a deviation).
Common mistake: Drawing a range after only one touch of each side, or trading the middle of the range where neither side has an advantage.
Related: Equilibrium (50% level) · Deviation · Range trading · Wyckoff method
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.