What Happens in Indices Trading after a Consolidation Pattern?
A consolidation chart pattern is a bilateral chart setup that signals the price is taking a break and the buyers & sellers in the market are yet to decide on which side the market will move - this shows that there's a tug of war between the two & neither side can gain control of the market.
This consolidation chart pattern can continue for some time until eventually one side of the market wins and a new indices trend forms in direction of the market to which the consolidation price break out moves to.
If the price breaks out to the upward side then the trend is considered to be a bullish up-wards trend.
If the price breaks out to the downwards side then the market trend is considered to be a bearish downward trend.
Traders can decide which side of the consolidation to trade once the price breakout happens & not before the price break out.