All terms
Definition
Consolidation
Consolidation is when price moves sideways inside a range. During consolidation, buyers and sellers are balanced.
Quick take
Price moves sideways inside a tight range.
Keep this in mind every time you see consolidation on the chart — context is everything.
Did You Know?
The longer price consolidates, the more explosive the eventual breakout usually is.
Common Beginner Mistake
Overtrading inside the chop. Most beginners lose money trying to scalp tight ranges that have no clear direction.