CHARTTHREAD

Consolidation

A consolidation is a period when price moves sideways in a narrow range instead of trending. A long consolidation next to a level is accumulation, the main symptom of a breakout.

A consolidation that presses into the level with higher lows (or lower highs) is a squeeze. A consolidation right after an abnormal candle, instead of the usual pullback, also shows the break is being prepared.

Learn more: pillar three, direction and accumulation.