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Range

Bounded price movement between support and resistance levels, often associated with mean reversion trading strategies.

A range is the difference between the highest and lowest prices of an asset during a defined period, reflecting volatility. In oil trading, the price range of Brent or WTI indicates market activity and potential trading opportunities.

Range analysis helps traders identify consolidation zones, set stop-loss levels, and anticipate breakout scenarios. For example, if crude trades between $80 and $85 for weeks, a breakout above $85 may signal a trend change.

Traders often combine range analysis with technical indicators like Bollinger Bands or pivot points to improve accuracy. Wider ranges indicate higher volatility, impacting risk management, margin requirements, and derivative pricing.

Monitoring price ranges allows traders to gauge market sentiment, plan entries and exits, and optimize hedging strategies.

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