A range-bound or mean-reversion trading strategy is based on the idea that currency prices tend to fluctuate within a defined range before returning to their average or mean value. Traders using this strategy seek to capitalize on price movements within these established limits. They buy when the price hits the lower boundary of the range, anticipating a return to the mean, and sell when the price reaches the upper boundary. Key indicators that support this strategy include the Relative Strength Index (RSI) and Bollinger Bands, which help identify overbought or oversold conditions within the market.