The term ‘Churning’ in technical analysis is used to describe a market condition where there is heavy trading activity but little or limited price movements. It is a situation where there is a lot of buying and selling in the market but the price of the security remains relatively unchanged or stagnant.
What does churning indicate?
Churning often indicates a period of indecision or uncertainty among traders. This is on account of both the bulls and the bears actively participating in the market but unable to push the price in either direction. The resultant situation is the market being stuck in a narrow trading range and not making significant progress in either direction.