Tips to Avoid Sideways Market
Please note, not all sideways conditions are always the same, some can be traded and some must be avoided. Even though it is full of confusion because the movement seems to be without direction, there are some tips that can be done for trading in sideways conditions.
Don’t trade when the market is open
These tips are so that traders avoid sideways, which is to avoid trading when the market has just opened. Open market around 4 am, and the night of certain months at 5 am. At these hours, it is not possible for scalpers to enter. At this hour, the market is generally sideways. Even worse, the spreads of all pairs become stretched or enlarged. It is recommended that traders open charts after passing this period. Traders can start trading at 7 am or 8 am if the trader really wants to trade in the morning. Even then, only pairs that contain JPY.
Don’t open a position a few hours before the news release
Shortly before the release of a news, the market is also often in a sideways condition. This is because most traders speculate by waiting for the future forecast. So, traders as scalpers, avoid trading just before the news release.
Don’t trade after 10 pm
Market conditions after 10 pm are generally very chaotic. In addition to sideways, there are also frequent unexpected price spikes. Of course this will be very difficult to analyze.
