Sideways Trend

What is the 'Sideways Trend'

The sideways trend describes the horizontal price movement that occurs when the forces of supply and demand are nearly equal. A sideways trend is often regarded as a period of consolidation before the price continues in the direction of the previous move.

A sideways price trend is also commonly known as a "horizontal trend".

BREAKING DOWN 'Sideways Trend'

Sideways trend is generally a result of the price traveling between strong levels of support and resistance. It is not uncommon to see a horizontal trend dominate the price action of a specific asset for a prolonged period before starting a move higher or lower. Brief consolidation is often needed during large price runs, as it is nearly impossible for such large price moves to sustain themselves over the longer term.

RELATED TERMS
  1. Sideways Market / Sideways Drift

    A sideways market occurs where the price trend of a certain trading ...
  2. Horizontal Channel

    Using trendlines to connect variable pivot highs and lows shows ...
  3. Horizontal Equity

    An economic theory that states that individuals with similar ...
  4. Trend

    The general direction of a market or of the price of an asset. ...
  5. Horizontal Well

    A well that is turned horizontally at depth, and that allows ...
  6. Horizontal Line

    A line that appears to proceed from left to right, or parallel ...
Related Articles
  1. Investing

    What is Horizontal Analysis?

    Horizontal analysis compares a company’s balance sheet or income statement over two or more accounting periods.
  2. Investing

    What's a Horizontal Merger?

    A horizontal merger occurs when companies within the same industry merge.
  3. Trading

    (Un)Mapping the Trend

    Much has been said about using trend analysis to gauge the market, but what do we really know about the concept "trend"?
  4. Trading

    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.
  5. Trading

    Dow Theory: The Three-Trend Market

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.comAn important part of Dow theory is distinguishing the overall direction of the market. To do this, the theory uses trend ...
  6. Trading

    Distinguish A Stock Price Correction With A Price Trend

    We explain how you can use trend lines to help avoid market corrections.
  7. Trading

    4 Factors That Shape Market Trends

    Trends allow traders and investors to capture profits. Find out what's behind them.
  8. Trading

    The Stages Of A Forex Trend

    Learn how to identify the stages of the many types of trends that occur in the forex market.
  9. Markets

    Profit By Understanding Fundamental Trends

    Fundamental trends are an important driver of financial markets and every investor and entrepreneur should analyze them.
  10. Trading

    Dow Theory: Trend Remains In Effect Until Clear Reversal Occurs

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.comThe reason for identifying a trend is to determine the overall direction of the market so that trades can be made with the ...
RELATED FAQS
  1. What impact does the growth in horizontal drilling have in the oil and gas sector?

    Read about the development of horizontal drilling for oil and natural gas and how the oil and gas sector has benefited from ... Read Answer >>
  2. What business structures expose entrepreneurs to unlimited liability?

    Understand the advantages and disadvantages of a horizontal integration. Learn when a company would want to integrate horizontally. Read Answer >>
  3. What are the differences between patterns and trends?

    Learn the difference between a pattern and a trend. Explore how technical analysts use patterns and trends to identify trading ... Read Answer >>
  4. Why should management teams focus more on horizontal integration?

    Understand the benefits of a horizontal integration and why management teams should focus more on a horizontal integration ... Read Answer >>
  5. How do I identify a stock that is under consolidation?

    Discover the three major characteristics that stocks or securities exhibit when they are trading under a period of price ... Read Answer >>
  6. How does horizontal integration allow companies to share resources?

    Learn how horizontal integrations allows companies to share resources. Understand specific examples of horizontal integrations ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center