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What Happens after a Consolidation Chart Setup?

A consolidation pattern is a bilateral chart setup that signals the price is taking a break and the buyers & sellers(bears) 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 price 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 downwards trend.

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

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