What Happens in Commodity Trading after a Consolidation Chart Pattern?

A consolidation pattern is a bilateral commodities chart pattern that signals the commodity price is taking a break & the buyers and sellers in the commodities trading market are yet to decide on which side the commodities trading market will move - this shows that there is a tug of war between the two & neither side can gain control of the commodities trading market.

This consolidation pattern can continue for some time until eventually one side of the commodities trading market wins and a new commodity trend forms in the direction of the market to which the consolidation commodity price break out moves to.

If the commodity price breaks-out to the upward side then the trend is considered to be a bullish upward trend.

If the commodity price breaks out to the downwards side then the trend is considered to be a bearish downward trend.

Traders can decide which side of the consolidation to trade once the commodity price breakout happens and not before the commodity price break out.