7.15What is a sideways market?
1What is it?
A sideways (range-bound) market moves between support and resistance without a clear trend.
2Why does it exist?
Buyers and sellers are balanced. Breakout traders wait; range traders buy near support and sell near resistance.
3Diagram
4Quick revision
- Flat range between support and resistance.
- Ends with a breakout or breakdown.
5Knowledge check
Q1. Another name for sideways?Show answer
Range-bound or consolidation.
Q2. How does a range end?Show answer
With a breakout or breakdown.
Q3. What strategy suits ranges?Show answer
Buying near support, selling near resistance.