How to Trade the Consolidation Stock Indices Chart Pattern

To trade consolidation stock indices chart patterns in indices traders need to learn about the technical analysis of consolidation stock indices trading pattern.

Consolidation Stock Indices Chart Patterns

Consolidation stock indices trading chart patterns are stock indices chart patterns with converging indices trend lines that form a indices price consolidation period.

The technical buy point from a consolidation stock indices chart pattern is the upside breakout of indices trading price

While a downside breakout of stock indices trading price is a technical sell indices trade signal.

Ideally, a market breaks out from a symmetrical triangle prior to reaching apex of the triangle.

Indices Trend-lines can be drawn connecting the lows & highs of the consolidation phase, the trend lines formed are symmetric and converge to form an apex.

A stock indices trading price breakout should occur somewhere between 60-80% into the consolidation stock indices chart pattern - triangle stock indices pattern. An early or late break out is more prone to failure, and therefore less reliable.

After a indices trading price breakout the apex forms support and resistance levels for the indices trading price. Indices Price that has broken out of the apex should not retrace past the apex. The apex of the consolidation stock indices pattern is used as a stop loss setting area for the open Indices trades.

When these consolidation stock indices chart patterns form we say that the Indices Trading market is taking a break before deciding which is next direction to take.

These consolidation stock indices chart patterns form when there is a tug of war between the buyers & the sellers & the stock indices trading market can't decide which way to continue.

Indices Trade a Consolidation Pattern? - Technical Analysis Consolidation Chart Pattern?

However, this consolidation stock indices chart pattern cannot go on forever & just like in a tug of war one side eventually wins, looking at the stock indices chart examples explained below see how the indices trading consolidation stock indices chart pattern eventually had a indices trading price break-out & moved in one direction.

Sell Trading Signal

Buy Trading Signal