I would like to illustrate Dio’s answer with a personal example.
It looks like a “flat”, but my profit for the specified period is double-digit
But, like a “trend”, and the result is a loss
Note. On the last chart, the dates break off on 03.15, because then the trade was “cut out” by the “big saw” filter.
So it’s not all that simple with the definition of “trend” and “sideways”. Indeed, from the anguish of the system, what looks like a “sideways” on a large timeframe is actually a change of several “trends” on a traded timeframe. And the fact that has an obvious non-zero shift over a long period is not always a “trend” on the traded timeframe.
What does this mean? And only that the concept of “trend” and “sideways” cannot be considered without “linking” to the volatility of a certain timeframe, that is, the “ruler” that Dio spoke figuratively about.
And the main thing: It is impossible to make money on the same movements, constantly trading simultaneously the “trend” (with stops) and “countertrend” (with take-profit). If you combine something, then either filters or the size of the “rulers”.