What is Sideway? 3 Effective Investment Strategies in a Sideways Market

1. What is Sideway?

Sideway refers to a market phase where there is no clear trend, and prices fluctuate within a narrow range between support and resistance levels. During this phase, supply and demand are balanced, preventing significant price movements.

2. How to Identify a Sideways Market

Price Range: Prices move within a narrow range, forming clear support and resistance zones.

Bollinger Bands: The bands contract due to decreased volatility.

RSI: The RSI oscillates between 30 and 70, not reaching overbought or oversold levels.

MACD: The MACD line and signal line move closely together without clear divergence.

Volume: Trading volume remains stable or slightly decreases, indicating market indecision.

3. Investment Strategies in a Sideways Market

Range Trading: Buy at support levels and sell at resistance levels to capitalize on price fluctuations within the range.

Scalping: Execute multiple short-term trades to profit from small price movements.

Portfolio Restructuring: Reassess the current portfolio, eliminate underperforming assets, and reallocate capital to more promising investments.