A range market, also called a sideways market, is a market condition where the price of an asset moves within a defined horizontal channel rather than trending strongly upward or downward. In this situation, the price repeatedly bounces between two clear levels: resistance at the top and support at the bottom. Traders often see this as a period of consolidation, where neither buyers nor sellers have enough strength to push the market into a new trend.

Range markets can appear in any financial instrument, including forex, stocks, and commodities. They are common during times of uncertainty or when the market is waiting for new information, such as economic data, earnings reports, or central bank decisions. While range markets may seem uneventful, they provide trading opportunities for those who adapt their strategies. Traders often buy near support levels and sell near resistance, aiming to profit from predictable price swings.

Technical tools like oscillators, including the Relative Strength Index (RSI) or Stochastic indicator, are frequently used in range-bound conditions, as they highlight overbought or oversold levels. Breakouts are also important to watch, since prices eventually leave the range to form a new trend. Understanding range markets is essential because they represent a significant portion of trading conditions and require a different approach than trending markets.