A range represents the price boundaries between which an asset trades, typically defined by support (lower boundary) and resistance (upper boundary) levels. Range-bound markets lack clear directional trends, with prices oscillating between established levels. Range trading strategies attempt to profit from these predictable price movements.

Range characteristics include width (difference between support and resistance), duration (time spent in range), and breakout potential. Tight ranges may precede volatile breakouts, while wide ranges provide multiple trading opportunities. Understanding range dynamics helps identify appropriate trading strategies and anticipate potential breakout directions.

Real-world example: Gold trades in a $50 range between $1,800 support and $1,850 resistance for two months, allowing range traders to buy near support and sell near resistance while monitoring for potential breakout signals.