What Happens in Indices Trading after a Consolidation Pattern?

A consolidation stock indices chart pattern is a bilateral stock indices chart pattern that signals the stock indices trading price is taking a break & the buyers and sellers in the stock indices trading market are yet to decide on which side the stock indices trading market will move - this shows that there is a tug of war between the two and neither side can gain control of the stock indices trading market.

This consolidation stock indices chart pattern can continue for some time until eventually one side of the stock indices trading market wins and a new indices trend forms in direction of the market to which the consolidation stock indices price break out moves to.

If the stock indices trading price breaks out to the upward side then the trend is considered to be a bullish upwards trend.

If the stock indices trading price breaks out to the downwards side then the trend is considered to be a bearish downward trend.

Traders can decide which side of the consolidation to trade once the stock indices trading price breakout happens and not before the stock indices price breakout.