Categories: Trading

Range

Range in technical analysis refers to the difference between the highest and lowest prices of a financial instrument, such as a stock or currency over a specified period of time. This is an important factor for traders and investors in determining the volatility of a particular security and identifying potential trends as well as support/resistance levels.

How to interpret the range in technical analysis?

When a stock has a high price of Rs. 100 and a low price of Rs. 60 over the course of a week, its range for that week would be Rs. 40. A stock with a larger or a bigger range is usually considered to be more volatile than one with a smaller range. On the other hand, a security or a stock with a small or a narrower range may indicate that it is trading in a tight range or experiencing a period of lower volatility.

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