This article has been translated from English to Gen Z Slang.
Range is just a fancy term for when a price is vibing between a high and low, basically living its best life without going beyond those lines. 🌈
The “range” is like the diff between a market’s peak and valley prices during a certain time.
It’s your go-to signal for whether things are chill or shook. 🤔
If the range is all stretched out, it means the market had a wild time in that period. 🌪️
How to Use Range
Just like any measure of vibes, range helps figure out the YOLO factor, aka the risk, of a trade. 🤑
If a market’s acting boujee with a wide range, the risk of diving into it is gonna be bigger.
It’s also clutch for spotting support and resistance levels. 💪
If a market’s been hanging in the same range for long, those boundaries? Yeah, they’re solid support and resist zones. 🛡️
How to Calculate Range
Calculating a range is as easy as subtracting the low from the high in the period you're checking out.
For example, if GPB/USD hits a high of 1.2090 and a low of 1.2010 in a day, then its range is 1.2090 - 1.2010 = 90 pips. 📈