#培训

Sideways consolidation—also known as a ranging market—refers to a situation in which neither the bulls nor the bears can decide the outcome. At this time, the bullish and bearish forces are basically equal, the market has no clear directional movement, and the price chart is being held between the support level and the resistance level.

Any ranging market will not last forever. Sooner or later, a winner will be determined, which can be confirmed by observing a breakout of the price beyond a certain boundary. These breakout moments also often create good entry points.

Formation stage of a ranging market (taking the end of an uptrend as an example):

- In an uptrend, the price will keep making new highs and new lows;
- When a new high is made and then a pullback forms a stage low, the price is unable to break through the previous high again. The new high is basically on par with the previous high. At this point, you can draw a horizontal channel; this requires at least 3 points—two highs and one low, or two lows and one high;
- During the consolidation, the price will repeatedly face resistance or support at the boundaries of the channel. At this time, you can use the bounce signals from these boundaries to trade. Market makers gradually accumulate positions during this period, and this process continues for a certain amount of time;
- In the end, the bulls and bears decide the winner, and the price breaks through one boundary, forming a new trend.