Range-Bound

In technical analysis, the term “range-bound” is employed to characterize the price behavior of an asset that stays within a defined range. Range-bound assets typically exhibit fluctuations between a clearly established upper resistance level, where the price fails to surpass, and a lower support level, where the price remains above. This pattern often creates a channel-like structure. Furthermore, the term “range-bound” can also be applicable to other technical analysis indicators such as the relative strength index (RSI).