What's Price Consolidation in Indices Trading?

Price consolidation in indices trading is when prices stop moving upwards or downward in a trend and start to move sideways in what is known as a consolidation.

Price will continue to consolidation and move sideways for a period of time until such a time that one side of the stock trading market - either the buyers or the sellers gain control of the stock trading market & either push trading prices upward in an upward trend or push trading prices downward in a down-wards trend.

Consolidation Stock Chart Patterns

Symmetrical triangles are stock chart trading patterns with converging trendlines that form a consolidation period and are used to trade the stock trading price consolidation.

Technical buy point from symmetrical triangle is the up-side break of stock trading price consolidation, while a down-side break of the stock trading price consolidation is a technical sell signal. Ideally, a market breaks-out from a symmetrical triangle prior to reaching apex of the triangle.

When these stock trading price consolidation setups form we say that the Trading market is taking a break before deciding which is next direction to take.

What's Price Consolidation in Indices Trading? - What's Consolidation in Indices Trading?

However, this stock trading price consolidation pattern cannot go on forever & just like in a tug of war one side eventually wins, below are 2 example of how stock price consolidation eventually had a break out pattern and moved in one particular direction.

Price Breakout Downward Sell Trade Signal after a Consolidation - What's Consolidation in Indices Trading?

Price Break Out Up-wards Buy Trade Signal after a Consolidation - What's Consolidation in Indices Trading?