A sideways market is a market condition where the price of an asset experiences limited price movement and fluctuates within a narrow range over a prolonged period of time. This type of market is also referred to as a horizontal or range-bound market, as the price tends to move within a specific price range without showing a clear directional trend.
In a sideways market, traders may find it challenging to identify potential trading opportunities as the price of the asset remains relatively stable. This type of market condition is often characterized by low trading volumes and a lack of market volatility, making it difficult to determine market sentiment and identify potential market turning points.
It is important to note that a sideways market may eventually lead to a breakout, where the price of the asset breaks out of its trading range and establishes a new trend. Traders may use technical analysis tools such as support and resistance levels, trendlines, and chart patterns to identify potential breakouts and capitalize on market movements.