Cryptos Land: Crypto Trading - Sideways Trend

Monday, 11 September 2017

Crypto Trading - Sideways Trend

A sideways pattern also called as horizontal pattern is a formation of price candles in a very tight price range. This means that there are no break out or no new support level. This happens when there is an equal pressure on both buy and sell sides. Sideways pattern also gets established when there is a down trend for a price of asset under consideration. This usually happens to test new support levels. A side way looks like the pattern which you can see in the picture.


What is happening in the market?
In a side way market the people are buying the stock on its support leading to an increase in price but similarly there are people selling the stock on its highs, i.e the resistance level. This leads the stock to be traded in a very limited price range hence forming a sideways trend.

From Investor Glossary
"When the price of a stock moves neither steadily upward nor steadily downward, it's said to be in a sideways trend. A sideways trend manifests when the number of investors who want to buy a stock and the number who want to sell a stock at a particular price are in balance or nearly in balance."

What Happens when there is Sideways Pattern?
Sideways Pattern signifies a consolidation for a price and new resistance or support level, which ever the case is. If the asset under consideration is going for a sideways pattern than either it will go up or go down. This makes it difficult for some traders to decide either to sell or buy the stock since the price can move in any direction after consolidation, usually the previous trend.
Also See
Crypto Trading - Head and Shoulder Pattern
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