How to Trade the Consolidation Stock Indices Chart Pattern

To trade consolidation stock indices chart patterns in indices traders need to learn about the technical analysis of consolidation stock indices chart pattern.

Consolidation Indices Chart Patterns

Consolidation stock indices chart patterns are stock indices chart patterns with converging indices trend lines that form a indices price consolidation period.

The technical buy point from a consolidation stock indices chart pattern is the upside breakout of indices price

while a downside breakout of stock indices price is a technical sell indices signal.

Ideally, a market breaks out from a symmetrical triangle prior to reaching the apex of the triangle.

Indices Trend lines can be drawn connecting the lows and highs of the consolidation phase, the indices trend lines formed are symmetric and converge to form an apex.

A stock indices price breakout should occur somewhere between 60-80% into the consolidation stock indices chart pattern - triangle stock indices chart pattern. An early or late breakout is more prone to failure, and therefore less reliable.

After a indices price breakout the apex forms support and resistance levels for the indices price. Indices Price that has broken out of the apex should not retrace past the apex. The apex of the consolidation stock indices chart pattern is used as a stop loss setting area for the open Indices trades.

When these consolidation stock indices chart patterns form we say that the Indices Trading market is taking a break before deciding the next direction to take.

These consolidation stock indices chart patterns form when there is a tug of war between the buyers and the sellers and the stock indices trading market cannot decide which way to move.

Indices Trade a Consolidation Pattern? - Technical Analysis Consolidation Indices Chart Pattern?

However, this consolidation stock indices chart pattern cannot go on forever and just like in a tug of war one side eventually wins, looking at the stock indices chart example explained and illustrated below see how the indices trading consolidation stock indices chart pattern eventually had a indices price breakout and moved in one direction.

Sell Indices Trading Signal

Buy Indices Trading Signal