If the price is really not going anywhere, then the lines that you draw through the highest highs and the lowest lows will either be horizontal and parallel to each other, or they’ll be converging (drawing closer together) or diverging (drawing apart). If they are diverging, it is not a nice time to trade. Wait for a trend to form. In this case you shouldn’t treat the lines as support and resistance lines but wait for the price to go past any one of them and continue in that way. So if the price breaks above the upper line you would buy, expecting it to continue in that way for a while. Like all foreign exchange strategies, these are not warranted. There’s always a risk of trades going against you, so you check your signals against other indicators and always use stop losses. Always test your system in a demo account before going live. These steps will help you to develop a successful foreign exchange trading plan.