I use 2 strategies for this:
1) I find that I've bought a currency just before bearish news comes out and it's suddenly dropping like a rock. Selling into this action prevents a margin call. It also gives me the opportunity to work the oscillating pattern that may develop. If indicators turn positive again, I can close the sell position for a profit and buy again at the lower price. If the new upside resistance is below my original buy, I will take profit on the 2nd buy near the resistance level and sell into the decline again. Rinse and repeat.
I may eventually admit defeat on the original buy, but in the meantime I have salted away enough profit riding the oscillations so that overall action in that currency is profitable. It's a bit grueling, but I've had some of my biggest wins that way.
2) I am trading an oscillating currency, trying to buy the dip and sell the rally. There is a danger that the price will fall below the apparent range. If this threatens to happen, I place a sell order just below the bottom of the trading range as insurance. If the bottom falls out, I have margin protection. If the sell executes and the price starts going up, I buy in at the lower price and ride it back up, offsetting the loss on the insurance. If it oscillates, I again end up making profits on the oscillations.
The trick is deciding whether to stop-loss or to insure. If the currency is going sideways, it is better stop-loss and find a more active pair. If the currency is having lots of price action, insurance is better, because it provides cover for racking up oscillating profits. The insurance sell is expensive, but I've had good luck with it.
The right indicators are critical in this strategy. If you cannot accurately anticipate oscillations, you will only lose money with this approach.
FWIW, I've thought of straddling the London or Tokyo opens with a pending sell below and a pending buy above the pre-open price, but I haven't tried that yet.
MM