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Range Bound
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What is a range bound stock?

Trend is a significant factor when performing technical analysis. In a buy and hold strategy it is important to find stocks that are trending up in their daily closing price. There will be down days, however, when viewing a daily or weekly graph the trend line will be upwards.

Range bound stocks are stocks that are neither trending up nor trending down. They are moving sideways in a pattern that shows a definite low (support) and high (resistance) for a specific period of time.

Investors that own a stock when it has a range bound pattern typically hold the stock looking for a signal to break out of the pattern in either an upward or downward motion. New investors typically stay away from a range bound stock because there is not an upward trend.

While others shy away from stocks in a range bound pattern, we find steady and dependable profits week after week. Are your returns consistent? Join now!



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