Range

Range is the distance between the highest and lowest prices a currency pair reaches within a defined time window. It is one of the most basic measurements in technical analysis and feeds into volatility metrics, trading strategies, and order placement.

A wide range means the market has moved a lot and is volatile. A narrow range means price is compressed and often signals consolidation before a breakout. Range is tracked on different timeframes. Daily range, weekly range, and session range each tell a different part of the story. The Average True Range (ATR) indicator smooths range over many periods to give a single volatility number traders can plug into position sizing and stop loss calculations.

For example, if EUR/USD's daily high is 1.0920 and its daily low is 1.0830, the daily range is 90 pips. On a standard lot where each pip is worth roughly $10, that means a trader could theoretically capture up to $900 from a perfect entry and exit across that single day. More practically, traders set stop losses that respect the range, such as placing a stop 1.5 times the recent ATR away from entry to avoid being shaken out by normal fluctuations.

In copy trading, range conditions affect how the master strategy operates. SteadyFlowFX's 6 algorithms adapt trade frequency and setup type based on whether pairs are ranging or trending. Understanding range dynamics helps subscribers see why some periods produce fewer or smaller trades — the strategy is being selective rather than forcing entries in conditions where its backtested edge is weaker.