The upper and lower price levels/ boundaries (range) for trading a security (asset) over the span of a period. The trading range changes into either support or resistance for future price movement if a breakout takes place. A breakout is often used as a buy or sell signal.

For example, a stock that trades within a confined price range is said to be range-bound (a range-bound stock), that is, moving sideways, edging up and down within the range, but not breaking out of it.

Trading ranges can persist for long periods. Therefore, trading in range-bound stocks may not a strategy of choice for most traders, as it produces no profits.