Markets don’t trend all the time. Quite often, prices move sideways, reacting to the same highs and lows again and again. This phase is known as a range-bound market and it requires a different approach.
🔍 Spot the range
When price keeps bouncing between clear support and resistance levels without making new highs or lows, the trend is paused. Directional strategies usually struggle here.
📊 Trade the range
Instead of chasing breakouts, traders often buy near support and sell near resistance. The idea is simple: price tends to oscillate inside the range until a real breakout happens.
🧠 Use confirmation
Indicators like RSI can help identify overbought conditions near resistance and oversold conditions near support. This adds confidence to entries and exits.
⚠️ Always manage risk
Sideways markets can end suddenly. Placing stop-loss orders just outside the range helps protect your capital if a breakout starts a new trend.
💡 Bottom line
No trend doesn’t mean no opportunities. It means adapting your strategy, staying patient, and focusing on discipline rather than prediction.
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📉 How to Trade When the Market Stops Trending was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.