Range
Range is a term used in finance to describe the difference between the highest and lowest prices of a security, commodity, or index over a given period of time. It is also used to describe the difference between the highest and lowest prices of a currency pair in the foreign exchange market. Range is an important concept in technical analysis, as it can be used to identify potential support and resistance levels. Range can also be used to measure the volatility of a security or market.
History of Range
The concept of range has been used in finance for centuries. In the early days of trading, traders would use range to identify potential support and resistance levels. This was done by observing the highest and lowest prices of a security or commodity over a given period of time. As trading evolved, range became an important concept in technical analysis. Technical analysts use range to identify potential support and resistance levels, as well as to measure the volatility of a security or market.
Table of Comparisons
| Security/Commodity | Highest Price | Lowest Price | Range |
|---|---|---|---|
| Apple Stock | $400 | $350 | $50 |
| Gold | $1,800 | $1,700 | $100 |
| S&P 500 | 3,400 | 3,200 | 200 |
Summary
Range is an important concept in finance, as it can be used to identify potential support and resistance levels, as well as to measure the volatility of a security or market. Range is calculated by taking the difference between the highest and lowest prices of a security, commodity, or index over a given period of time. For more information on range, you can visit Investopedia, The Balance, and other financial websites.
See Also
- Support and Resistance
- Volatility
- Technical Analysis
- Price Action
- Trend
- Moving Average
- Relative Strength Index (RSI)
- Bollinger Bands
- Fibonacci Retracement
- Candlestick Patterns
