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A sideways market is a term used to describe price movement where the price fluctuates within a tight range for an extended period of time without trending one way or the other.

Sideways markets also get referred to as range-bound markets, ranging marketsnon-trending markets, trendless markets, or choppy markets.

Instead of price trending up or down, price simply oscillates in a horizontal range or channel, with neither the bulls or bears able to gain control.

Sideways markets are typically described by areas of support and resistance within which the price oscillates.

Sideways Market

How to Trade a Sideways Market

Traders can exploit a sideways market by anticipating breakouts, either above the current resistance area or below the current support area.

Traders can also trade “inside” the range as price bounces off the support and resistance areas and stays trapped.