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Trading Strategies

What Is Range Trading

A range is a stretch in which the price is shut between two levels, a floor and a ceiling, and range trading is the family of strategies that work between them and stop when the price is outside. This paper shows you gold's eleven weeks between 3249 and 3454 in the summer of 2025 from real bars, three visits to the ceiling and two to the floor, the idea as a ball in a room, the visits ringed on the daily chart, the room's measurements and where the closes sat, and the rectangle tool that draws a range on your platform.

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

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Eleven weeks between two levels

A range is a stretch in which the price is shut between two levels. Here is one from real daily bars: gold from 16 June to 29 August 2025, each day a stalk with its close as a dot. For eleven weeks the price stayed between a floor of 3249.01 and a ceiling of 3453.88, 205 dollars apart. It visited the ceiling three times, on 16 June, 23 July and 29 August, and the floor twice, on 30 June and 30 July, and 49 of the 55 closes sat in the middle half. Range trading is the family of strategies that work between the two edges.

A ball in a room

Picture a ball in a room. It bounces off the floor and the ceiling and stays inside, and while the room stands, nobody knows where the ball is going next but everybody knows where it cannot go. A range strategy is written for the walls. It works between the two levels, and it stops the moment the price is outside them, because a ball outside the room is a different game, and that game has its own name, the breakout.

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