How to Trade Consolidation Chart Pattern Signal

A consolidation pattern is a bilateral stocks chart pattern that signals the stocks price is taking a break & the buyers and sellers in the stocks market are yet to decide on which side the stocks market will move - this shows that there is a tug of war between the 2 & neither side can gain control of the stocks trading market.

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

If the stocks price breaks out to the upward side direction then the market trading trend is considered to be bullish upward market trend.

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

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

Stocks Trade Consolidation Chart Pattern Signal

Stocks Trade Consolidation Chart Pattern Signal

Stocks Trade Consolidation Chart Pattern Signal