Sideways trading action
As a market moves sideways, trading volume is concentrated within a price band. This high volume price band then forms a potential support or resistance zone. #2: Congestion Zones For Trade Exits. Most trends do not reverse sharply. They tend to drift sideways before resuming or reversing. Trading the Extremes, 3 Setups to Plan For. We saw some incredible price-action today with lots of reliable opportunities, but as I look forward to Wednesday, I can see a challenge on the horizon – we’re trading at the major extremes… A trading session often begins with a strong move, called an impulse wave, in one direction. This usually occurs within the first five to 15 minutes after stock trading begins. The price may then pull back and stall out, forming a consolidation where the price moves sideways for two or more minutes.