In one lineA trend makes directional progress. A range moves back and forth inside an area.
Describe before you predict
If price keeps making higher highs and higher lows, the market is showing an uptrend. Lower highs and lower lows suggest a downtrend.
If neither side is making sustained progress and price keeps rotating between boundaries, the market may be ranging.
Why this matters
A method that works well in a trend may behave poorly in a range. The first task is therefore to describe the environment honestly.
Simple question:Is price progressing in one direction, or repeatedly returning to the same broad area?
Remember this
- Trend = directional progress.
- Range = rotation.
- Conditions can change, so keep reassessing.
Educational content.
This lesson is provided for general educational and informational purposes and is not personal financial or investment advice.