During the sideways consolidation period, use 'range + grid thinking' to reduce emotional fluctuations.
When the market is not trending, many people are most likely to become confused — going up and down repeatedly, with frequent stop-losses being triggered.
In this situation, I switch to 'range trading + grid thinking'.
How to do it?
First, confirm that it is a consolidation and not a trend.
Prices frequently encounter resistance near the same high points and stabilize near the same low points;
indicators and moving averages are all intertwined, with no clear direction.
Draw the upper and lower bounds of the range.
The upper bound acts as a potential area for reducing positions/shorting;
The lower bound acts as a potential area for adding positions/replenishing.
Only operate near these two areas, and try not to act in the middle zone.
Enter and exit in batches, rather than all at once.
Adding positions: place 2–3 batches of orders near the lower bound;
Reducing positions: take profits in 2–3 batches near the upper bound.
If the range is effectively broken with increased volume, stop the grid thinking and switch back to trend strategy.
The benefit of this approach:
You don't need to 'precisely predict tops and bottoms';
Use mechanized batch trading to replace emotional 'all in and all out'.
Remember: the goal during the consolidation period is not to make a large profit all at once, but to steadily grind out profits + wait for the next trend.