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What Happens after a Consolidation Chart Pattern?

A consolidation pattern is a bilateral chart setup that signals the price is taking a break and the buyers & sellers in the market are yet to figure out on what side the market will move - this displays that there is a tug of war between the 2 & neither side can gain control of the market.

This consolidation setup can continue for some time until eventually one side of the market wins & a new trend forms in direction of the market to which the consolidation price breakout moves to.

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

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

Traders can decide what side of consolidation to trade in once the price breakout happens & not before the market price break-out.

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