Trading range-bound markets

To define a trading range in a sideways market, draw a rectangle to enclose the price action. Anchor it by placing one corner on a key support low and the opposing corner on a key resistance high.

The rectangle's boundaries now visually represent the support and resistance zones. Traders can use these to trade the bounces. When the chart is close to the bottom, it may signal an upcoming uptrend. If it is close to the top, a downtrend may start.