A sideways market occurs when the price moves within a certain range without a clear trend. This is a good opportunity to apply range trading, where you buy near the support level (bottom) and sell near the resistance level (top). Here is a simple guide that is easy to understand:

1. Understand Support and Resistance

• Support: A price level where demand is strong enough to prevent the price from falling further. Typically, prices often bounce off this level.

• Resistance: A price level where supply is strong enough to prevent prices from rising higher. Prices tend to stop or move down from this level.

2. Identify Market Range

• Use small to medium timeframes (5M, 15M, 1H).

• Look for price patterns that move up and down between two horizontal lines.

• Tools: Use Horizontal Trendline or Rectangle Box on your chart to mark support and resistance areas.

3. Range Trading Strategy

a. Buy on Support, Sell on Resistance

• Buy Entry: When price approaches or bounces off support.

• Sell Entry: When price approaches or bounces off resistance.

b. Confirmation with Indicator

Use simple indicators to strengthen the signal:

• RSI (Relative Strength Index):

○ RSI below 20 (oversold) → Buy opportunity at support.

○ RSI above 80 (overbought) → Sell opportunity at resistance.

• Bollinger Bands:

○ Price touches the lower Bollinger Band near support → Buy opportunity.

○ Price touches the upper Bollinger Band near resistance → Sell opportunity.

c. Take Profit dan Stop Loss

• Take Profit: Place near resistance when buying and near support when selling.

• Stop Loss: Place a few points outside the range. Example: If support is at $100,000, place a stop loss at $99,700.

4. Practical Examples

Setup Buy:

1. BTC/USDT price is in the range of $92,000-$95,000.

2. Price is approaching support at $92,000 and RSI is showing oversold conditions.

3. Buy Entry: Around $92,100 with a target at $94,900 (near resistance).

4. Stop Loss: At $91,800 (slightly below support).

Setup Sell:

1. Price reached resistance at $95,000 and RSI shows overbought.

2. Sell Entry: Around $94,900 with a target at $92,100 (near support).

3. Stop Loss: At $95,200 (slightly above resistance).

5. Tips for Trading in Sideways Market

• Do not open a position if the price is near the middle of the range; wait in the support or resistance area.

• Avoid overtrading. Focus on opportunities with a good risk/reward ratio (ideally 1:2 or better).

• Pay attention to volume: Range trading is more effective in markets with stable volume, not when volatility is high.

• If the price breaks out of the range, be prepared to change your strategy because the market may enter a new trend.

$BNB

Range trading strategy with support and resistance is a simple yet effective way to trade in a sideways market. By understanding the support-resistance areas and using indicator confirmation, you can take advantage of profit opportunities from recurring price patterns. Stay disciplined, use risk management, and don't force entries outside of the plan! 🚀

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