Also referred to as a trading range. This occurs when a security trades within consistent high and low prices for a period of time. The top of the range provides price resistance, while the bottom provides price support and the value of the security fluctuates within this range. When the security breaks through the top or bottom of the range, it is understood to mean momentum is building, which can be positive or negative. These upward or downward trajectories are known as “breakouts” or “breakdowns.” These can be capitalized upon for buying or selling opportunities by traders.