Sideways Market / Sideways Drift
Definition of 'Sideways Market / Sideways Drift'A sideways market occurs where the price trend of a certain trading instrument, such as a stock, has been experiencing neither an uptrend nor a downtrend. Instead, the price activity has been oscillating between a relatively narrow range without forming any distinct trends. A sideways market is said to be trading in a horizontal range or channel, with neither the bears nor the bulls taking control of prices. |
|
Investopedia explains 'Sideways Market / Sideways Drift'Market participants can exploit a sideways market by anticipating breakouts, either above or below the channel formed during the sideways market. Sideways markets are also referred to as choppy or non-trending. If the sideways drift is expected to remain for a long period of time, investor can earn profits by selling options with approaching expiration dates. |
Related Definitions
Articles Of Interest
-
Simple Strategies For Capitalizing On Trends
Find out how following a trendline bounce or a new swing high or low can help you get into a trend early. -
Investment Strategies For Volatile Markets
Find out how you can change your investing strategy based on market conditions. -
Finding Value In A Sideways Market
When the market is non-directional, your profit potential need not go sideways too. -
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity. -
Market Summary for May 24 2013
The major U.S. indices moved lower this week, ahead of the long Memorial Day weekend. After reaching all-time highs last week, many traders attributed the sell-off to a combination of profit ... -
What Type Of Trader Are You?
There are different ways stock traders attempt to profit from market movements. Which of the strategies do you use? -
Strong Volume Gainers, Can It Continue?
Volume is one of those indicators that gets overlooked, likely because it's shown by default on almost every chart, making it a little dull. But volume is what drives markets. Big volume jumps ... -
Market Summary For May 17, 2013
The U.S. stock markets moved sharply higher this week, on track for its fourth straight week of gains, driven by ongoing improvements in economic indicators. -
Parabolic SAR Buy Signals
The Parabolic SAR indicator is flashing "buy" in these four diverse stocks. Not simply relying on one indicator though, I take a look at the overall technical outlook and determine which ones ... -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one.
Free Annual Reports