How to Correctly Spot A Sidways Trend

Here you will find out how to spot a sideways trend.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• stock/commoditiy/currency, etc. chart
• something to draw with(computer program, pencil & paper)

1. Look a chart of a stock/commodity/currency, etc. If the stock is trending sideways it will look like the picture above.

2. 

   You should draw trend lines for support and resistance to confirm that the trend is sideways/neutral. U will notice that over a period of time the stock doesn't break support or resistance.

3. Monitor the trend to see if there is an upcoming breakout that you may or may not want to pass up.

Tips & Warnings

• Most people pass on sideways trends but if you currently own 100 shares of a stock it could profit you to trade a covered call and profit from the stock being neutral.
• Technical analysis is not an exact science, but if you use it correctly you can create a vast personal fortune.