What is a Trading Range?
The trading range has to do with the difference between the low and high prices associated with the trading activity of a security or group of securities within a given market. There is usually a time frame specified for the trading range. The duration of the trading range may be a few hours, a full trading day, or a full trading week. There is a small difference between a trading range on a stock market and one that has to do with a commodities market. With the stock market, a range of trading focuses on the spread or difference between the highest price and lowest price recorded during the time period under consideration. The trading range can be used as a good indicator of how a stock is performing within the current economy and general market conditions In the case of a commodities market, the trading range has to do with the scale of trading prices authorized by the market for the current trading period. Orders cannot be executed unless the price named in the order falls within th
