# Trading-range Position Trading-range Position is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Boxes confirmed trading ranges and reads where price sits inside them: the lowest subdivision fills as buy territory, the highest as sell territory, the middle as a no-trade zone, on a thirds or quarters grid. Edge bands span tested support and resistance, recovered pokes reset the effective extremes, and a dashboard plus ten alerts track position, tests and resolution. - Indicator in the LuxAlgo Library, by LuxAlgo, published Jul 20, 2026. - Access: free. - Concepts: [Trading-range Position](https://www.luxalgo.com/library/concept/trading-range-position/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=k2pzrtobmrig3epx7pm8htwo - Page: https://www.luxalgo.com/library/indicator/trading-range-position/ **Trading-range Position** makes location inside a range a first-class reading: when a compressed window confirms a range, the build splits it into a grid and reports where every close sits, the first dedicated build of [trading-range position](https://www.luxalgo.com/library/concept/trading-range-position/). Buy territory fills the lowest subdivision, sell territory the highest, the no-trade zone the middle; a live label states position as a percentage of the range plus its territory. ## How to Trade the Trading-range Position? - **Territory entries**: alerts fire when price enters the lower or upper subdivision, where structural stops are smallest relative to the ride across the range. - **No-trade zone**: a return to the middle is alerted too. Neither location nor information favors range entries there. - **Edge resets**: a recovered penetration resets the effective extreme the way a spring resets a working low; sustained closes beyond an edge resolve the range. Edge bands span the swings that tested each side, a companion to the other [Wyckoff range studies](https://www.luxalgo.com/library/family/wyckoff/). ## Trading-range Position Settings - **Formation Length** (default 20): detection window whose extremes seed support and resistance. - **Maximum Range Height** (default 3) with **Volatility Baseline** (default 200): compression ceiling in ATR multiples, and the ATR length behind it. - **Swing Length** (default 5): bars each side confirming edge-test swings. - **Breakout Confirmation** (default 2): consecutive closes beyond an effective extreme that resolve the range. - **Edge Reset Sensitivity %** (default 5): minimum penetration depth (share of range height) reported as a reset. - **Subdivision** (default Thirds): Thirds or Quarters as the position grid. - **Show Dashboard** (on, Top Right, Small); style: **Territory Fills**, **Edge Test Bands**, **Position Label**, **Keep Previous Ranges** (all on), **Edge Reset Markers** (off). ## Frequently Asked Questions ### How does this differ from Accumulation vs Distribution Ranges? [Accumulation vs Distribution Ranges](https://www.luxalgo.com/library/indicator/accumulation-vs-distribution-ranges/) asks which way a consolidation is likely to resolve. This build asks the prior question (where price is inside the structure right now) and stays agnostic about direction. ### What exactly is an effective extreme? The working level position and stops are measured against. A poke that recovers before the confirmation count becomes the new extreme: a spring stretches buy territory downward instead of ending the range. ### Why treat the middle as a no-trade zone? An entry taken mid-box risks about as much as it can earn (half the height either way) with no tested edge close by. The dashboard still counts tests and territory duration there. ## Related indicators - [Absorption](https://www.luxalgo.com/library/indicator/absorption/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/absorption.md - [Wyckoff Wave & Volume Studies](https://www.luxalgo.com/library/indicator/wyckoff-wave-and-volume-studies/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/wyckoff-wave-and-volume-studies.md - [Re-accumulation vs Re-distribution Diagnosis](https://www.luxalgo.com/library/indicator/re-accumulation-vs-re-distribution-diagnosis/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/re-accumulation-vs-re-distribution-diagnosis.md - [Nine Buying/selling Tests](https://www.luxalgo.com/library/indicator/nine-buying-selling-tests/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/nine-buying-selling-tests.md - [Point & Figure Cause Counting](https://www.luxalgo.com/library/indicator/point-and-figure-cause-counting/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/point-and-figure-cause-counting.md - [Cause & Effect](https://www.luxalgo.com/library/indicator/cause-and-effect/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/cause-and-effect.md - [Wyckoff Method](https://www.luxalgo.com/library/indicator/wyckoff-method/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/wyckoff-method.md - [Spring](https://www.luxalgo.com/library/indicator/spring/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/spring.md --- Source: https://www.luxalgo.com/library/indicator/trading-range-position/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/