I’ve seen many posts and articles in the last few days complaining about how boring the crypto market is right now.
And it’s true, most coins are moving sideways (except for some bangers, e.g. $TRB ).
However, it is also true that this is absolutely normal. In fact, the crypto market moves sideways most of the time.
Now, the question many have is, if it is still possible to make money by trading during these times?
Short answer: Absolutely. But you just have to adapt your strategy. Trading strategies that work in pumping/dumping markets usually don’t work in a sideways moving market.
For example, I love to trade based on technical indicators. In fact, I have a set of strategies that combine technical indicators and give high-quality signals (you can also check them out on Crypto OS).
However, especially on the daily timeframe this strategies don’t work in a sideways ranging market. The reason is simple: There are only a few signal. Check out the right part of the below image.
Alright, let’s take a closer look at the strategies I use during times when markets range sideways:
1️⃣ How To Make Money In Sideways Market — Option 1 — Trade Support & Resistance
Looking at the right chart of the above image, you can see that the number of trade signals on the daily went almost down to zero.
But a ranging market usually implies that most coins bounce between support and resistance zones.
$LINK is a fantastic example. Therefore, it is better to trade the swings instead of relying on TA signals. Once you figured out the range you can simply buy and sell and support and resistance lines.
Of course this doesn’t work everytime but it is still a very reliable approach in a ranging market.
2️⃣ How To Make Money In Sideways Market — Option 2 — Trade lower timeframes
I’m not a fan of lower timeframes, like the 1H chart. However, the number of trade signals is still quite stable on the 1H chart (check the left chart of the initial graphic).
Why’s that? Because the trade signals on the 1H chart often captures the swings described in Option 1.
Therefore, if you want to stick to TA-based signals, the 1H chart might be an option during these times.
However, it needs thorough analysis to filter out the high potential signals.
Want to get started with Crypto Trading?
If you want to get started with crypto trading, you can check out Crypto OS.
It’s the platform I’ve developed based on all the mistakes I made.
It contains data-driven trade signals, backtest data, AI forecasts, trading bots, and so much more. Try it for free!
