Charts Patterns
Consolidation
Consolidation is a powerful pattern. The prices in a consolidation move in a range, and there is no trend. This
is a period of indecision, until price breaks out from the range. When two highs and two low points are connected
within a consolidation, they form a channel.
Consolidation is basically a rest from the uptrend or downtrend movement in price, before price continues again
from the previous trend, or reverses. Trade entry can be determined after price breaks out of its consolidating
channel or trendline, and a move of equal distance from the last significant low or high can be
anticipated.
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