What is Consolidation in Stocks?

Stocks Price consolidation in stocks is when prices stop moving upwards or downwards in a stocks trend & begin to move sideways in what is known as a consolidation.

Stocks Price will continue to consolidation and move sideways for a period of time until such a time that one side of the stocks market - either the buyers or the sellers gain control of the stocks market and either push stocks prices upward in an upward stocks trend or push stocks prices downward in a downward trend.

Symmetrical Triangles Stocks Trading Pattern

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

Technical buy point from symmetrical triangle is the up-side break of stocks price consolidation, while a down-side break of the stocks price consolidation is a technical sell signal. Ideally, a market breaks out from a symmetrical triangle prior to reaching apex of the triangle.

When these stocks price consolidation patterns form we say that the Stocks market is taking a pause before deciding next direction to take.

What's Consolidation in Stocks? - What is Stocks Price Consolidation in Stocks?

However, this stocks price consolidation pattern cannot go on forever and just like in a tug of war one side eventually wins, below are 2 examples of how stocks trading price consolidation eventually had a break out and moved in one direction.

Stocks Price Break out Downward Sell Stocks Signal after a Consolidation - What is Consolidation in Stocks?

Stocks Price Breakout Upwards Buy Stocks Signal after a Consolidation - What is Consolidation in Stocks?