Forex Market Goes Sideways

It’s really fun trading the trends. All you have to do is check whether the market is trending upwards or downwards,then you make your trades. In fact it is said in  forex circles that the trend is your friend(Whether it’s true not, that’s another show.). But there comes a time when  the forex  market goes sideways. By that I mean the market neither experiences  an uptrend nor a downtrend. It’s skidding all over the place the way a car skids over a slick road.

This can be very dangerous because you risk losing all your profits from your previous trades in this scenario when you don’t need to trade. So to help you not caught in this slick sideways trap, I’m going to show you what to do when the forex market goes sideways. But before I do, let me show you what a sideways market looks like.sideways-market

This is a classic example of a sideways market. The is no evidence of a consistent uptrend or downtrend. The chart is skidding all over the place You’d be crazy to risk your money in such a mess.

Now that we’ve gotten the introduction out of the way, onward to the business at hand.

Is The Market Worth Trading?

The first question you need to ask yourself is “Is the Market Worth Trading?” To make that determination,  head straight to the daily chart time frame and find out whether the market is trending up or down. If not, then the market is sideways. If the market is sideways,then the next question you need to ask ourself is “Is it withing trading range(Or range-bound)? Or is it chopping sideways? If the sideways  market is range-bound then it’s worth trading. Let’see what a sideways market that is range-bound  looks like.

sideways-range.png

 

This chart is a classic illustration of a sideways market that is range-bound. The sideways market is range-bound because it’s   swinging between the support and resistance levels. Also there is  reasonable distance between the support and resistance levels. This provides great opportunities for trading signals, and the possibility   that the price will edge closer to the range.

If The Waves Are Choppy, Dont Trade

If the waves are choppy, don’t trade. And by waves, I’m referring to the choppy markets.When we say a market is choppy,  we refer to a market that  has high consolidation. This  type of market area is a no go area because the distance between reversals is too small for profitable risk reward.

If you want to test whether the market is on choppy waters, just head to the daily chart time frame , and ask the questions we posed earlier. Let’s see what a choppy market looks like.

choppy-market

This looks ugly doesn’t it? The price action looks choppy and it’s moving in  a narrow range. These are definite symptoms of a choppy market. You do not want to risk your money in this mess.

How Do I Trade Sideways Market?

Just look for buy and sell signals at the support and resistance levels of the trading ranges.   One  great trading strategy for sideways markets is the fakey pattern. Here, you wait for the market to make a false break of the trading range-which of course creates profit opportunities for you.This strategy is quite useful as it creates deadly moves in the opposite direction back towards the other end of the range. Let’s take a look at a false break in  sideways/range-bound market.

false-break

As you can see there are pin bar buy/sell signals all over the trading range at both support and  resistance levels. You can make a sell/buy entry trade at both support and resistance levels.But make sure you really know what you’re doing or you’ll get burnt.

If you’re not sure about support and resistance levels refer back to Identify Support and Resistance Levels With Price Action Analysis.  And If you’ve forgotten what pin bars are, refer to Pin Bar Srategy – How To Trade It

If you’ve stumbled in here looking to join the forex trade bandwagon look up Why Forex Trade Is So popular.  Next,if you want to give your trading skills an edge by relying on pure price action trading/analysis,  instead of fancy forex robots,  get started with What is Price Action Trading?    And to be able to analyze/trade  with price action data, You Need To Know Ten of These Candlestick Patterns.  If you can’t interprete what your candlesticks are telling you, you cannot trade  with price action data.

That’s a wrap for “The Forex Market Goes Sideways” It’s possible to make profits from sideways markets. But you need to play your cards carefully, or your trading account will go up in smoke. Till next time, take care.

Looking to open a forex trading account?

Sign Up With EasyMarkets and Get A Free eBook – The Beginners Guide to Forex Trading

 

 

 

 

Advertisements

154 thoughts on “Forex Market Goes Sideways

  1. Excellent goods from you, man. I have understand your stuff previous to and you are just too magnificent.
    I actually like what you’ve acquired here, really like what you are stating and the
    way in which you say it. You make it entertaining and you still care
    for to keep it sensible. I cant wait to read much more from you.
    This is really a tremendous web site.

    Like

  2. What’s Going down i am new to this, I stumbled upon this I’ve fouhd It positively helpful andd it has aided me out loads.

    I amm hoping to give a contribution & assist other customers
    like its aided me. Great job.

    Like

  3. After looking at a few of thhe blog articles on your site, I seriously apprreciate yohr
    technique of blogging. I bookmarked it to my bookmark website list and
    will be checking back in the near future. Please check out my website
    as well aand tell me your opinion.

    Like

  4. Great blog right here! Additionally your web site lots up very
    fast! What web host are you using? Can I get your associate link to yolur host?
    I wish my web site loded up as quickly as yours lol

    Like

  5. I’m gone to tell my little brother, that he should also
    go to see this blog on regular basis to get updated from most
    up-to-date information.

    Like

  6. Hey! Impressive content! I adore strategy that you reviewed
    Forex Market Goes Sideways. This web site is great!
    I will be happy the fact that I’ve discovered it.
    Practically all content intriguing, notable and well crafted .

    I must start my own blogging site really nonetheless i have little a while.
    Due to my very source of income Me can’t maybe create articles those classified ads but jobs
    towards university or college.
    Approximately an hour I normally visit this website
    best essay writing services review in which Capable have
    adequate recommendations and decide on the reliable creatingcompany

    Like

  7. Hiya! I know this is kinda off topic hⲟwever , I’d figured I’d ask.

    Would you be interesteⅾ in exchanging links or mаybe
    guest authoring a blog article or vice-versa? My website covers a lot oof tһe
    same topics as yours and I bеlieve we could greatly
    benefit frоm eah other. If you might be interested fеel free to shօot me an e-mail.
    Ӏ look foirward to hearing from you! Wonderful blog by the
    ᴡɑy!

    Like

  8. naturɑlly like your web-site buut you have to cһeck the spelling onn ԛuite a few οf youг posts.

    Many ߋf them are rife with spelling problems and I find
    it very botһersome to inform thе truth then again I will
    surely come baϲk again.

    Like

  9. Excellent blog you have got here.. It’s difficult to find good quality writing like yours nowadays.
    I really appreciate people like you! Take care!!

    Like

  10. If ѕome one desires expert view on the topic of blogging and site-buiⅼding afteгward i recommend him/heг to gօ
    to see this wеbpage, Keeр up the fqstіdious job.

    Like

  11. Hi there, just became alеrt to ylur blߋg through Google, and foսnd
    that it’s really informative. I am going ttߋ watch out for brussels.

    I will appreciate if you continue this іn future. Lots off pеople will be
    benefited from your writing. Cheers!

    Like

  12. Terrific article! This is the kind of information that are supposed to
    be shared around the web. Disgrace on Google for now not positioning this put up higher!
    Come on over and discuss with my site . Thank you =)

    Like

  13. , Necesita privilegios de administrador para editar cuentas de usuarios que no
    sean la suya propia.

    Like

  14. Hello, Neat post. Tһere’s a problem wіth your site in internet explorer, might check this?
    IE nonetheleѕs is the marketplace leader and a hhuge portion of
    other folkѕ will pass over your excelleent writing due to this
    prߋblem.

    Like

  15. Ꮋeya i amm for the primary time here. I found this Ƅoard and I in finding
    It really useful & it helped me out a lot.
    I hope to present one thing again and help others such as you aided mе.

    Like

  16. It’s wonderful tһat you are getting thoughts from
    this article as well as from our discussion mɑde here.

    Like

  17. El sábado para pedidos hechos ya antes de las doce pm y el último día de la semana para órdenes antes de las once am.

    Like

  18. Ԍood day! I know this iѕ kinda off topіc neveгtheless I’d fiured I’d ask.
    Would yyou be interested in trading links ᧐rr maybe guest authoring a blօg post or vice-versa?
    My website addresses a lot of the same topics as yours and I thinhk we couⅼd greatly benefit from each other.
    If you’re іnterested feel free to send me ann e-mail.
    І look forward to hearing from you! Wonderfᥙl blog bby the way!

    Like

  19. I want to point out my affection for your kindness
    giving support to those individuals that should have help
    on your matter. Your real dedication to passing the message along appeared to be definitely valuable and
    has in most cases enabled some individuals just like me to realize their pursuits.
    The invaluable report can mean a whole lot to me and further more to my colleagues.
    Warm regards; from all of us.

    Like

  20. De este modo, vas a tener un control de horarios del personal preciso y exacto,
    sabiendo en todo momento si están trabajando, si han recibido las alertas de trabajo,
    y si las han chequeado ignorado por algún motivo., Mientras que la tendencia rock transforma los blancos y negros en la
    base de relojes de gran tamaño y mayor rotundidad estética.

    Like

  21. Wonderful website. Plenty of helpful information here.

    I am sending it to several buddies ans also sharing in delicious.
    And certainly, thanks in your effort!

    Like

  22. Hello to every body, it’s my first visit of this webpage; this web site contains remarkable and actually excellent material
    for readers.

    Like

  23. With havin so much written content do you ever run into any
    problems of plagorism or copyright infringement?
    My website has a lot of unique content I’ve either authored myself or outsourced but
    it seems a lot of it is popping it up all over the internet without my permission. Do you know any techniques
    to help stop content from being ripped off? I’d definitely appreciate it.

    Like

  24. Undeniaƅly imagіne that which you said. Your favourite reason appeared tο be at the internet the easiest factor to be mindful
    of. I say to you, I definitely ցet annoyeԁ at the sɑme time as
    people think about worries that they plаinly don’t understand аbout.
    You managed to hit the nail upon thе higheѕt as neatly
    as defined out the whole thing without having side-effects , people can take a
    signal. Will probably be again to get mоre. Thankѕ!

    Like

  25. You are mmy aspiration, I possess few webb logs and
    often run out from post :).

    Like

  26. hey there and thank you for your info – I have definitely picked up anything new from right here. I did however expertise some technical points using this site, as I experienced to reload the website lots of times previous to I could get it to load correctly. I had been wondering if your web hosting is OK? Not that I am complaining, but slow loading instances times will sometimes affect your placement in google and can damage your high-quality score if advertising and marketing with Adwords. Well I am adding this RSS to my e-mail and could look out for a lot more of your respective fascinating content. Make sure you update this again soon..

    Like

  27. Thanks for your personal marvelous posting! I truly enjoyed reading it, you are a great author.I will be sure to bookmark your blog and will eventually come back at some point. I want to encourage that you continue your great work, have a nice holiday weekend!

    Like

  28. What’s Happening i’m new to this, I stumbled upon this I have found It positively helpful and it has aided me out loads. I hope to contribute & aid other users like its helped me. Great job.

    Like

  29. As I website ⲟwner I conceive the articles here is rattⅼing wonderful, tһanks for
    your efforts.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s