Definition
A stretch where price moves sideways between a fairly steady ceiling and floor instead of trending. Also called consolidation.
The story
After a big run, a market may pause. Gold might bounce between roughly $3,900 and $4,050 for weeks (example numbers) while buyers and sellers wait for news. The top and bottom of that box become levels traders watch, and a move out of it is called a breakout.
Why you'll see it
Commentary calls a market "range-bound" when it's stuck between levels while traders wait for a catalyst.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms