To be successful in forex trading, following the trend perhaps would be among the most popular skills that a trader must master. However this article wont discuss about trending, but discuss about its opposite. History shows that most markets tend to move in a non-trending, or “sideways” fashion more of the time than they are in a trending mode. So how to trade in non-trending markets. The most popular answer would be “swing trading.”
The key point for swing trading is finding a market that is trapped in a sideways trading range (also called a congestion area), or in an up-trending or down-trending channel on the chart (remember, channel!). When observing from the chart, the trader must be able to distinguish some clear support and resistance levels that are boundaries of the congestion area or channel. When a market price comes close to the support or resistance area boundary, the trader will establish a position: long if prices are moving lower and close to the support boundary, and short if prices are moving higher and toward the resistance boundary. It sounds simple, but remember, trading contains a lot of surprises. The price might break out...
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