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Trends & Market Structure

What Is a Trading Range Breakout

A trading range breakout is the first close outside a band the price had kept to for weeks: above its top or below its bottom. This paper shows you one drawn from gold's daily candles in September 2025, after three months in a band, the idea as a box whose lid comes off, the breakout on the daily chart, the day that closed two dollars short beside the day that closed out, and the ask line on your platform.

Difficulty
Advanced
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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Three months inside, then out

A trading range breakout is the first close outside a band the price had kept to. Gold had stayed between 3249.01 and 3451.15 since June 2025, three months of rises that stopped at the top and falls that stopped at the bottom. On 29 August it reached 3453.88 during the day and closed at 3448.91, two dollars and twenty-four cents under the top. On 1 September it closed at 3476.02, above it, and every close of the following two weeks was higher still. The 1 September close is the breakout.

A box with a lid

The picture is a box with a lid. For weeks the price rattles inside: up to the lid, back to the floor, up to the lid again. A breakout is the lid coming off, a close above it, or the floor giving way, a close below. Inside the box every rise was stopped by the lid. After the breakout the lid is behind the price, and the range that held for three months is a thing that has finished.

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