Consolidation
a.k.a. Range, Sideways market
A period when price moves sideways in a range, neither side winning, often after a strong move.
In plain English
A period when price moves sideways in a range, neither side winning, often after a strong move.
Consolidation is the market holding its breath. After a run, buyers and sellers reach a truce and price bounces between a rough floor and ceiling.
It often ends with a breakout or breakdown, sometimes in the direction of the previous trend. Range traders buy near the bottom and sell near the top; breakout traders wait for the escape.
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