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Consolidating

A very small portion of price action is spent trending. Mostly, prices consolidate in a range, and the ranging can form various patterns. The specific characteristics of the pattern can identify in which direction the consolidation will breakout, and how far prices will travel from it.

Following are examples of patterns that are consolidating. Each is linked to more examples of the pattern:

Ascending Triangle

Channel

Complex Triang

Descending Triangle

Double Bottom, Double Top

Head & Shoulders

Island

Rounding Bottom, Rounding Top

Symmetrical Triangle

Wedge