Flat describes a market condition where there is little to no significant movement in asset prices over a period of time. Flat market lacks clear direction, and price fluctuations are minimal.
Lower trading volumes are the main characteristic of the flat markets, which can be a result of a number of things, including lack of economic data releases, major financial centres' public holidays, or trader uncertainty.
Flat markets are typically characterised by low volatility, which can lead to reduced trading opportunities and lower market excitement.
It can eventually transition into a trending market. A significant breakout above resistance or below support might signal the beginning of a new trend. Traders watch for such breakouts to adapt their strategies accordingly.
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