Trading range (sideways market)

Example

Suppose a stock bounces off $45 three times and turns back below $50 four times over two months, with no higher high or lower low. A range trader might buy near $45 and take profits near $50, a $5 swing, but avoid entries in the middle around $47.50, where neither edge is close. A daily close at $51 would end the range.

Hypothetical numbers, for illustration only.