DaytradeTeam Profitzzz

People most often think of the market as either moving up, as in an uptrend, or down, as in a downtrend. However, the stock market spends about one third of the time moving horizontal, or what is called a sideways trend. It is supply and demand that pushes the market into this horizontal movement. You may also hear this action called a trending range or sometimes, a line. Although sideways trend is the correct term, occasionally will hear it referred to as “the market is trendless”.

Traders experience their highest level of frustration when dealing with a sideways trend. Their technical tools are designed to work in a market that moves up or down

So which of the three possible decisions do they make here? Do they buy in the market, taking a long position? Do they sell here and go short? Or do they do nothing at all?. This can be a great opportunity to trade options spreads like Iron Condors or Butterfly Spreads that profit when the market or stock has very little movement, or to focus on day trading for intraday movement gains.

Take the guess work out of trading and follow our expert stock picks.

Start your trial membership now.