Non-trend trading range

You need to know when stock is not in uptrend or downtrend . Such situation is named trading range.

Generally stock in trading range is moving sideways between two significant levels of support and resistance .

Easiest way to identify this situation is see it at chart. Like at this example:

You see that price is moving without any significant trend. There is not easy to find higher high and lows. Price is crossing moving averages up and down too often. Also volume cannot provide any additional hint.

You need to be sure that you know what you can expect that stock can do in near future to do profitable trades. You are not able to tell it with such stock chart.

So you have to avoid trade such stock until it breaks out from this trading range.