How to confirm that the market is sideway?

Check the screenshot below

This is the current situation on EURUSD H1 chart, green lines are pending orders on the levels where the market can break these levels and continue moves - trend following. As you can see, these levels doesn’t cover market sideways.
Please note that you can’t expect high win rate, usually it is bounce between 30-50%

Plot a long/mid/short MA on multiple frames. If all averages are relatively tight and flat then the market is sideways

How long is a piece of string?

Depends on who you ask and how it’s measured.

How can one effectively identify and confirm that the Forex market is in a sideways or consolidating phase?

To confirm that the market is sideways, observe if the price consistently oscillates between a defined range of support and resistance levels without forming distinct higher highs or lower lows. Additionally, technical indicators like the Average Directional Index (ADX) showing values below 20 can signal weak trend strength, indicating a sideways market. Analyzing volume can also help; low and steady volumes often accompany range-bound markets.

My advice to new traders would be to not get involved in range trading or any strategy in a sideways market.

2 Likes

Yeah, surely I’m gonna follow this.

do you have any preferred strategies for trading in these conditions?

Thanks mate, no offense please but why do you use such hard structure to comment :smiley: I feel like talking to my university head quarter :smiley: