What is Indices Price Consolidation in Indices Trading?

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

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

Consolidation Indices Chart Patterns

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

The technical buy point from a symmetrical triangle is the upside break of stock indices price consolidation, while a downside break of the stock indices price consolidation is a technical sell indices signal. Ideally, a market breaks out from a symmetrical triangle prior to reaching the apex of the triangle.

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

What is Indices Price Consolidation in Indices Trading? - What is Consolidation in Indices Trading?

However, this stock indices price consolidation pattern cannot go on forever and just like in a tug of war one side eventually wins, below are two examples of how stock indices price consolidation eventually had a breakout and moved in one direction.

Indices Price Breakout Downwards Sell Indices Trading Signal after a Consolidation - What is Consolidation in Indices Trading?

Indices Price Breakout Upwards Buy Indices Trading Signal after a Consolidation - What is Consolidation in Indices Trading?