A range-bound market is one in which price bounces between a specific high price and a low price.

The high price acts as a major resistance level in which the price can’t seem to break through.

Likewise, the low price acts as a major support level in which the price can’t seem to break as well.

We could classify the market movement as horizontal, ranging, or sideways.

It’s also known as a “choppy market” or simply as “being choppy“.

A choppy market is the opposite of a trending market.

Kind of like choppy waves in the ocean.

In a choppy market, there is no clear direction, and the price just “chops around” or “chops up and down” and trades within a very narrow range.

Trend traders tend to get “chopped up” in choppy markets.

What is the favorite food of a range-bound trader?

Chop suey.

Okay, let’s get back on topic.  Chop chop!