Range-Bound trading strategies are techniques traders use to capitalise on securities fluctuating within a defined price range, bouncing between established support and resistance levels. Instead of trending upward or downward, the asset's price moves sideways, creating predictable highs (resistance) and lows (support). Traders employing range-bound strategies buy near support and sell near resistance, profiting from repeated price reversals within the channel. Common indicators used include Bollinger Bands, Relative Strength Index (RSI), and moving averages to identify overbought or oversold conditions.

This approach works best in stable, low-volatility markets where clear boundaries exist. Breakouts, when prices move beyond support or resistance, can invalidate the strategy, so traders often use stop-loss orders to limit risks. Popular methods include mean-reversion trades, where prices are expected to return to an average, and channel trading, where buy/sell orders are placed at trendlines. Range-bound trading is common in forex, stocks, and commodities but requires discipline, as false breakouts can lead to losses. By combining technical analysis with strict risk management, traders can exploit sideways markets effectively while minimising exposure to sudden trend shifts.