Price Envelope
Price envelope is a financial term used to describe the range of prices that a security or asset can reach. It is a way of predicting the future price of a security or asset by looking at the past prices and the current market conditions. The price envelope is determined by the highest and lowest prices that the security or asset has reached in the past. The price envelope can be used to identify potential buying and selling opportunities, as well as to assess the risk associated with a particular security or asset.
History of Price Envelope
The concept of price envelope was first developed in the early 20th century by economist Irving Fisher. Fisher argued that the price of a security or asset is determined by the forces of supply and demand. He proposed that the price of a security or asset will move within a certain range, or envelope, based on the current market conditions. This range is determined by the highest and lowest prices that the security or asset has reached in the past. This concept has been used by investors and traders ever since to identify potential buying and selling opportunities.
Comparison Table
| Price Envelope | Price Range |
|---|---|
| High | Highest price reached in the past |
| Low | Lowest price reached in the past |
Summary
Price envelope is a financial term used to describe the range of prices that a security or asset can reach. It is determined by the highest and lowest prices that the security or asset has reached in the past. The price envelope can be used to identify potential buying and selling opportunities, as well as to assess the risk associated with a particular security or asset. For more information about price envelope, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Price Target
- Price Action
- Price Momentum
- Price Support
- Price Resistance
- Price Channel
- Price Gap
- Price Trend
- Price Volatility
- Price Index
