DJ,
There are many strategies for sideways market trading,drawing support and res lines,and then buying support and selling resistance........probably some other techniques using indicators et al.
Now there is a problem here..........If I were to trade a trend,and then the pivots crack,I would be stopped out.Presuming we get a 60min uptrend,we are long and after some time,we get a break in pivots..........we take our raised stops,and say thank you.We then wait for the 60min dntrend to be over and once we get a higher pivot low and high........we would enter.We think that the 60min is done with its down move,and the time has come back for the up move.........Or has it?Could it not go sideways,for many days?Yep,sure...........Entering at support begs the question ,Which support?Shorting the resistance begs the question:Which resistance?In doing so,we change our battle plans.We are back to that all important dreaded word:Guessing!
The problem with a sideways trend is the numerous fake outs in both directions......Not entering on a breakout,anticipating a fake out,can be a real pain when the true breakout does occur.Entering on every fake out and getting faked out can be trying on our patience,......very frustrating!
And yet,to shift strategy,thinking the uptrend is over,the sideways has started,etc.......it just means that we are no more Going With The Flow......we are no more adjusting the Sail as per the direction of the Wind........we have started thinking,predicting,we have started guessing,and in the long run that decision will come back to haunt us.
So then what do we do?How do we know for certain that the uptrend is over(that we can know,so we can get out!)and a sideways trend has started??We don't........and so,therefore,we do not leave the decision to prediction and anticipation.We therefore formulate certain rules and regulations that keep us out of certain trades as per the longer time frames.......and then,after all of this,we still have an Entry Signal,we take it,we put our stops,it could be a fake out,we are out if taken out.We reenter again when we get a signal again,we follow our system of attack come what may........
Sideways trends can be irritating,frustrating,and great amounts can get lost by getting stopped out.And therefore very crucial,very vital to squeeze out every last drop of a trend that does occur,when it does occur.........And when that trend comes back,we are piling on our positions,raising stop losses,and piling on...........We want every last bit because we know that when this trend is over,back comes that cursed sideways move,that will take some of our profits away!!
Saint
ps:lol on the guruji bit
