Range

Key Highlights

• Range is a set of related values, usually numbers, that has a specific order and can be measured in some way.

• Range = Highest Price − Lowest Price

What is Range?

Range is a set of related values, usually numbers, that has a specific order and can be measured in some way. It is often used to describe the difference between the highest and lowest values in a series of numbers. In general, a range is the extent, scope, or bounds of something.

How it’s Calculated?

Range = Highest Price − Lowest Price

Why it Matters?

A wide range means big price swings, signaling high volatility (more risk).
A narrow range means smaller price changes, suggesting stability (less risk).
It’s often shown on charts as the vertical span of a candlestick or bar.

How it’s Used?

• Traders look at the range to spot support (where prices often stop falling) and resistance (where prices often stop rising).

• They might buy near the low end of the range and sell near the high end.

• It helps gauge market risk - bigger ranges often mean riskier investments.

• Different assets have different ranges; for example, stocks or commodities usually swing more than government bonds.

Example:

If a stock hits $50 at its highest and $45 at its lowest in a day, the range is $5.