Range
A price consolidation between horizontal support and resistance with no lasting HH/HL structure. Range strategies need different logic from trend trading.
Definition
A range is a price consolidation between horizontal (or nearly horizontal) support and resistance — with no lasting structure of higher highs and higher lows (HH/HL), or their equivalent in a downtrend. Different setups work in a range than in a trend; confusing the two environments is a common cause of overtrading.
Example
An index bounces off 4800 and stalls below 4920 for three weeks. Your playbook: mean reversion at the edges with tight invalidation, or waiting for a break-and-retest — not “catching continuation” in the middle of the box.
Anti-example / common mistake
Forcing a trend-following strategy inside an obvious range. The second mistake: drawing a range after two candles and treating it as a certainty.