$BTC No excessive trading in the sideways range!

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The sideways range is a period where prices do not have a clear trend, fluctuating within a narrow range between resistance and support levels, without strong increases or decreases. In this area, buying and selling forces are relatively balanced, causing prices to move sideways.

Characteristics of the sideways range

1. Prices fluctuate within a narrow range:

The upper resistance level prevents prices from rising.

The lower support level keeps prices from falling deeply.

2. Low trading volume:

Usually decreases compared to periods with strong trends.

3. Technical indicators:

RSI fluctuates around the 50 level.

MACD often moves sideways with unclear signals.

How to identify the sideways range

Analyze larger time frames (4h, 8h, 1 day):

Observe the highest and lowest price levels over a long period.

Use Bollinger Bands:

When the Bollinger Bands narrow, prices often move sideways.

Draw resistance and support lines:

Prices continuously bounce up and down between these two lines.

Trading strategies in the sideways range

1. Range trading:

Buy (Long) near the support level.

Sell (Short) near the resistance level.

2. Wait for a breakout:

Only enter orders when prices clearly break out of the sideways range and are accompanied by high volume.

Breakout up: Long entry point.

Breakout down: Short entry point.

Note:

In the sideways range, signals are often unclear and can cause noise. Therefore, manage risk tightly and avoid trading with large volumes.