Probably the most boring type of the trend where the price actually doesn’t go in any direction and just fluctuate in a range.
This is the type of trend that is not so popular in the trading community because it doesn’t offer much trading opportunity.
Not only that, the biggest problem is that the majority of trading setups are being invalidated and that’s the reason why most traders are waiting for a clear trend to look for trade opportunities.
How to recognize a sideways market?
Here is an example of a market without a real trend:
Where is price heading? Up or down?
For most of us, it is evident that price is ranging in an area without a real trend.
What are the characteristics of a sideways market?
No rule will describe this type of market environment.
It is simply time when the price fluctuates in range, between the upper and lower border.
No one knows how long it can take until we get some clear trend.
There is also a strategy that is used to trade this type of market, but we will cover that topic later on.
At the moment it is important to understand the meaning of the sideways market.
Here is an example of a sideways market from a real chart:
Milos is an independent trader, with a background in journalism and publishing. Nomadic by nature, he’s lived in four different countries this decade. He’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives. Milos got into Bitcoin while completing his degree and hasn’t looked back since, writing about anything crypto-related. He is the co-founder of the Cryptoaims and he has a strong passion to educate people about this revolutionary technology.