It is well known and generally accepted that in about 80% of the time, the financial markets are moving sideways. If you are a day trader then you will probably not agree, but if you take the time and zoom out to a high enough timeframe you will find out that this is actually true. The financial markets just do not have it in their nature to make a new historic high or a new historic low too often. Most of the time they move up and down repeatedly, without going higher past the historic high or lower past the historic low. This is a range bound market.
Ranging markets are the things that give the most headaches to forex traders. The majority of traders out there trade with the trend, they have a trend following system and they wait for that system to provide them signals or setups to enter into the market and trade. When the trend ends or stops for a period of time, those trend following systems start to give false signals and the trader has a good change unfortunately to lose all the profits previously earned. Or, in a best case scenario, they can ”