We just entered the last two weeks of August, and we’re seeing a day here and there when the market feels like it’s stuck in slow motion.
Trading volume thins out, the big players are on vacation, and the explosive setups seem fewer and farther between.
That being said, one pattern keeps coming back again and again to reward us with huge gains.
Looking to start your trading week off with a bang?
Try my Monday Setup on for size…
Every Monday, the market kicks back into gear after a weekend of rest… And that reset creates a unique opportunity!
As the first session of the week gets started, we look for a very specific pattern that often shows up like clockwork.
And it has delivered some incredible wins!
Look at this past Monday…
Biopharma Soligenix (NASDAQ) gained an incredible 144%* after announcing a promising FDA designation for one of its treatments.
These are the kinds of morning spikes we hunt for every Monday!
Want to learn how to spot them for yourself?
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
A quiet or sideways market like we’re currently in doesn’t mean there’s no opportunity.
It’s often the perfect environment for a strategy that thrives when price action cools down.
Table of Contents
How to Trade Sideways Markets Like a Pro
Most traders dream about breakouts, the big moves that send stocks soaring.
However, stocks don’t break out every day. In fact, a lot of the time, they just grind sideways.
But don’t think for a minute that there are no good trades out there. It just means you need the right strategy.
That’s where channel trading comes in.
Think of it like a tunnel…
There’s a floor (support) and a ceiling (resistance). The stock price bounces between those levels, over and over, forming a channel.
And if you know how to trade the channel, you can take advantage of that movement again and again.
This strategy is simple, clear, and perfect if you want consistency without chasing hype.
How to Spot a Channel
Finding a solid channel isn’t complicated, but it does require patience and a good eye for detail. Here’s how you do it:
#1 Look for sideways action:
Forget trending charts for now. You want stocks consolidating in a clean, horizontal range.
#2 Draw your lines:
Mark support at the bottom (where the stock bounces) and resistance at the top (where the move stalls or reverses).
#3 Confirm the channel:
A real channel needs at least 2–3 touches on both support and resistance. The more touches, the stronger the confirmation of a channel.
#4 Check the width:
A wide channel means more profit potential. A tight channel might not be worth the effort.
For example, a stock ranges between $10 (support) and $12 (resistance). Buyers defend $10, sellers step in at $12. That’s the range to plan your trades around.
The Rules of Trading Channels
This isn’t a strategy where you wing it. The rules are simple but non-negotiable:
Buy near support:
Wait for confirmation, like a reversal candlestick or volume spike, before entering.
Sell near resistance:
Don’t get greedy. Take the easy wins unless there’s clear breakout confirmation.
Use stop losses:
If the stock breaks below support or above resistance, the channel is invalid. Cut the trade quickly.
Be ready to switch gears:
If the stock explodes out of the channel, it’s no longer a range play — it’s a breakout. Adjust your plan fast.
My Final Thoughts…
Channel trading isn’t flashy, but it works.
It keeps everything simple and grounded in price action. You don’t need a dozen fancy indicators — the chart itself shows you where to trade.
Markets are driven by human behavior, and that behavior creates patterns that show up again and again.
This approach also forces discipline. Instead of chasing every move, you’re waiting for the stock to come to you.
If you’re looking for a strategy with clear entries and exits, defined risk levels, and a repeatable process, channel trading is it.
It’s simple, it’s reliable, and it could be exactly what you need while we wait for September to heat things back up.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Do you know how to spot a false breakout?
This might be the next strategy to add to your toolkit. Are you ready?
Here’s another one… but it’s not for the faint of heart.