What Happens in Stocks after a Consolidation Chart Pattern in Stocks?

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 two & neither side can gain control of the stocks market.

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

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

If the stocks price breaks out to the downwards side then the 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 break out.