Sideways Trend

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DEFINITION of '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".

INVESTOPEDIA EXPLAINS '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. Trend

    The general direction of a market or of the price of an asset. ...
  2. Consolidation

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  3. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  4. Trend Analysis

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  5. Basing

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  6. Downtrend

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