how we can trade in sideway or chopy market…
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Hello @pravesh
A sideways market will have supports and resistance levels formed over a period of time. Until these levels are broken, the support levels will see demand come in where people buy and the resistance levels will see supply come in where people sell.
Trading the right levels is something you pick up with time. Stocks are usually overbought and oversold - people who don’t catch this end up buying early and selling early.
A good way to catch a reversal is to observe reversal patterns. This will eliminate any assumptions you have about your own levels. If you observe patiently, the markets will show you what it’s actually doing with the different patterns it forms on the chart and trades can be taken accordingly.
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is market giving any idea before going to side way?
A sideways market is usually formed when people are not willing to buy above a certain level(more sellers than buyers, stock falls from this level) and when people are not willing to sell below a certain level(more buyers than sellers, stock moves up from this level).
This forms a range. If you see supports and resistances being formed in a stock chart then this is the market letting you know that the stock is in a range bound movement.
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use stochastic, when near support and stoch oversold simply buy at market with stop 2.5x ATR… target would be near resistance. to understand this better google ‘babypips chart art’.
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