A range-bound market is a scenario where there's price blockage within the range on the price chart. Which means the general price action is situated between two specific levels, the high of the range, and the low of the range. You might hear some traders refer to range-bound market trading as “price consolidation,” “congestion phase,” or “flat market.” When the Forex pair is not going either up or down, it is considered to be in “consolidation phase,” or “horizontal phase.”
Throughout the plethora technical indicators that are used by many traders, momentum indicators are still proving to stand strong as a classic trading strategy. So, let’s dive in and start with what momentum trading even means. When you're referring to momentum in Forex, it means the strength of price with bearish momentum being the strength of a downward move in price and bullish momentum being the strength of an upward move in price.