what does it mean "A neutral, or consolidating market"?
technical
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- In Forex Beginners
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- John Ka...
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- 1 year ago
Answers
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In this market there is a very little or no price movement. So the market does not trend and it moves in sideways. |
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The market is trading in a tight range or sideway. A period of indecision for most traders. |
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In any market it means that neither the bulls nor the bears are prevailing in moving the security in either direction. There could be low volume & liquidity until a move is made. Price for the security trades in a tight range for an extended period of time. Usually a horizontal support & resistance channel. |
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When the market moves sideways, or non-directionally, the market is consolidating. This makes trading decisions more difficult and often traders just watch and wait. |
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Sideways markets are also called sideways channeling markets. This occures when neither currency pair is dominating or exploiting a trend |
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"A neutral, or consolidating market" is a flat market, in which it is a situation where the prices change little over a specific period of time. |
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Investopedia explains Neutral If an investor has a neutral opinion, that is, he or she feels a security or index will neither increase nor decrease in value in the near future, the investor can undertake an option strategy that may profit despite the lack of movement in the underlying security. |

