How Do I Trade Price Consolidation in Trading?

How Do I Analyze Price Consolidation in Trading?

Forex price consolidation in forex trading is when prices stop heading upward or downward in a trend and start to move sideways in what is known as a consolidation of price.

Forex price will continue to move sideways and consolidation of price will continue for a period of time until such a time that one side of the market - either the buyers or the sellers attain control of market & either push prices upwards in an upward trend or push prices downwards in a down-wards trend.

Consolidation Patterns

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

The technical forex trading buy trade signal from a symmetrical triangle is the upside break of price consolidation, while a down-side break of price consolidation is a technical forex trading sell signal. Ideally, a market breaks-out from a symmetrical triangle prior to reaching apex of the triangle pattern.

When these price consolidation setups form we say the market is taking a break prior to deciding next direction to head.

How Do I Trade Price Consolidation in Trading?

However, this price consolidation pattern setup can not go on forever & just like in a tug of war one side eventually wins, below are two price consolidation pattern examples of how price consolidation eventually had a price break out & moved in one direction.

How Do You Trade Price Consolidation in Trading?

How Do I Interpret Price Consolidation in Trading?

How Do I Trade Price Consolidation in Trading?