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Consolidation

The Fundamental Truths About a Trending MarketBefore you can trade successfully, you must first understand what defines a market trend. 🔼 What is an Uptrend? An uptrend is characterised by a series of Higher Highs (HH) and Higher Lows (HL). This signals that buyers are in control and price is climbing steadily. 🔽 What is a Downtrend? A downtrend is identified by a series of Lower Lows (LL) and Lower Highs (LH). This indicates that sellers are dominant and price is consistently falling. 📌 Important Facts About a Trending Market Trends don’t change easily. Once a trend is established, it tends to persist. A trend reversal takes time and effort. It doesn't happen abruptly — the market needs a strong reason to change direction. There are always warning signs. Before a trend changes, there’s usually a pattern or shift in behaviour that acts as a clue. The bigger the trend, the longer it takes to reverse. A well-established trend will require more time and evidence before it breaks. 🎯 Keys to Trading Any Market Successfully Identify the market condition. Is the market trending upwards, downwards, or moving sideways (consolidating)? Study price behaviour at key levels. Understand how price reacts at significant highs and lows. Learn the anatomy of price waves. Recognise wave structure — how price expands and contracts in trends. Align your trades with the market condition. Your entry and exit strategies should fit the current phase of the market. 🔚 Summary Mastering trends is one of the most important skills in trading. When you understand what defines an uptrend or downtrend, recognise when a trend may be ending, and align your strategy with the market condition, you set yourself up for consistent success. Patience, observation, and timing are key — because the market always leaves clues, but only for those who are prepared to see them.
Education
by Charts247TradingAcademy
4 Stages of Price Delivery (ICT Concepts)In this video I go through the 4 stages of price delivery as it pertains to ICT Concepts. Generally, the market is going through either of the following: Consolidation Expansion Retracement Reversal Price starts from a consolidation, where Smart Money accumulates their position, and then an expansion, where price is trending in a direction for the purpose of seeking liquidity and/or manipulating sentiment. From an expansionary phase, price will either retrace to re-accumulate orders and expand again, or have a complete reversal. Now, it is important to note that price is fractal, meaning the signatures you see on a lower timeframe perspective could also be seen on a higher timeframe perspective. In a singular candlestick, there can be multiple phases of price delivery happening. Once one can fit all these pieces together in regard to how market makers book price, one can have a clear insight into where price is likely going and where it likely won't go again, all with a high degree of accuracy. Thanks for watching and reading! - R2F
Education
by Road_2_Funded
2
HOW-TO: Cyato Bands █  Overview Welcome to the getting started page dedicated to my automated trading strategy Cyatophilum Bands, which is in continuous development. The strategy principle is to identify consolidation areas, catch breakouts and ride the trend as long as possible. █  Trade examples Breakout from Tight Consolidation Price consolidates within a narrow range and identifies the breakout point. False Breakout Avoidance Filter out noise from the market by incorporating volume, trend and range filters. Multi-Timeframe Analysis Set the Bands time frame higher than the current chart to perform MTF analysis. Reversal Confirmation In the strategy direction settings, you can choose to go long, short or both. Profitable Trend Continuation A cool feature the take profit has is that it gets disabled when the trend is strong and clear, allowing to play safe in a ranging market, while maximizing profits in strong trends. █  Indicator settings Bands Settings The band configuration settings allow you to create any kind of band, my favorite is the Donchian channels, but you can also create Bollinger and Kelter kinds of bands. Filter Settings The entry is triggered by a band breakout, but only that is not enough to create a solid strategy. Adjust the consolidation area, set a volume, range and trend filter to strengthen your entry. Stop Loss Settings Easily create a stop loss system using %, ATR, pips or AUTO calculation modes. Add a trailing stop using ATR or Classic modes. (more modes can be added upon request) Take Profit Settings Set a take profit system using also different modes and the amazing feature to disable take profit during strong trends. Backtest Settings Backtest quickly using the information panel. See if you beat buy and hold and ATH buy and hold, as well as other stats like daily return. █  Backtesting results & preconfigured charts BTC/USDT Snapshot: Chart : www.tradingview.com (Access Required) ETH/USDT Snapshot: Chart : www.tradingview.com (Access Required) BNB/USDT Snapshot: Chart: www.tradingview.com (Access Required) SOL/USDT Snapshot: Chart: www.tradingview.com (Access Required) ADA/USDT Snapshot: Chart: www.tradingview.com AVAX/USDT Snapshot: Chart: www.tradingview.com LINK/USDT Snapshot: Chart: www.tradingview.com MATIC/USDT Snapshot: Chart: www.tradingview.com IMX/USDT Chart: www.tradingview.com █ SCRIPT ACCESS Indicator and automation tools access can be purchased on my website. Links in my signature below.
Education
by cyatophilum
XAUUSD 1H - Consolidations Trading Setups - C.I.R.C. MethodThe chart above showcases various consolidations and their formation dynamics. Consolidation, Initiation, Retracement, Continuation (CIRC) Consolidations What are “consolidations”? Consolidations, often labeled as “ranges” in mainstream trading, hold a deeper meaning at T.T.T. Here, consolidations are the playgrounds of the BFI, zones where prices oscillate between highs and lows, as illustrated below. Within these confines, intentions simmer as BFI stack orders to propel future price movements. We confidently trade consolidations, fully aware of the intricate dynamics unfolding within the market’s underbelly.
TVC:GOLDEducation
by Anonymous_Analyst
XAUUSD 15M - Consolidations Trading Setups - C.I.R.C. MethodThe chart above showcases various consolidations and their formation dynamics. Consolidation, Initiation, Retracement, Continuation (CIRC) Consolidations What are “consolidations”? Consolidations, often labeled as “ranges” in mainstream trading, hold a deeper meaning at T.T.T. Here, consolidations are the playgrounds of the BFI, zones where prices oscillate between highs and lows, as illustrated below. Within these confines, intentions simmer as BFI stack orders to propel future price movements. We confidently trade consolidations, fully aware of the intricate dynamics unfolding within the market’s underbelly.
TVC:GOLDEducation
by Anonymous_Analyst
XAUUSD 1H - Consolidations Trading Setups - C.I.R.C. MethodThe chart above showcases various consolidations and their formation dynamics. Consolidation, Initiation, Retracement, Continuation (CIRC) Consolidations What are “consolidations”? Consolidations, often labeled as “ranges” in mainstream trading, hold a deeper meaning at T.T.T. Here, consolidations are the playgrounds of the BFI, zones where prices oscillate between highs and lows, as illustrated below. Within these confines, intentions simmer as BFI stack orders to propel future price movements. We confidently trade consolidations, fully aware of the intricate dynamics unfolding within the market’s underbelly.
TVC:GOLDEducation
by Anonymous_Analyst
Very basic understanding of support and resistance areas (2 min)In trading, support and resistance are key concepts that help traders analyze price movements and make informed decisions. Here's a basic explanation: Support: Definition: Support is a price level at which a financial instrument (like a stock, currency pair, or commodity) tends to stop falling and may even bounce back up due to buyers. Analogy: Think of support like a floor that prevents the price from falling further. It's a level where buyers are more inclined to enter the market, seeing the current price as attractive. Resistance: Definition: Resistance is a price level at which a financial instrument tends to stop rising and may face difficulty moving higher due to seller pressure. Analogy: Picture resistance as a ceiling that prevents the price from going higher. It's a level where sellers may be more active, considering the current price as too high. In summary, support and resistance are like psychological levels in the market where buying and selling interest tends to cluster. Traders use these levels to make decisions about when to enter or exit trades, set stop-loss orders, or identify potential trend reversals. When the price approaches support, traders may look for buying opportunities, while at resistance, they may consider selling or taking profits.
NYSE:NIOEducation
by ThePrintingRoom
5
Mastering Market StructureBullish Market Structure: Bullish Vibes! It's all about making Higher Highs and Higher Lows. When you spot this pattern, you're riding the wave of optimism in the market, and it's your chance to seize the moment and soar with the bulls. Consolidation Market Structure: Consolidation Market Structure is all about lateral movement, where the market forms Equal Highs and Equal Lows. It's a phase of uncertainty, with neither bulls nor bears holding a clear advantage. Traders often await a breakout to determine the next market direction. Bearish Market Structure: Bearish Market Structure: Get ready for Lower Highs and Lower Lows. Sellers are in control, creating a solid downtrend. Traders look for short entry opportunities on retracements.
Education
by BlackWatch01
Trading Lesson 👨‍🏫#2 - Understanding Consolidations in CryptoIn today's lesson I will explain the difference in consolidations. Some of you are new to the market and are probably wondering what's happening exactly when it's not moving in price and when it's moving down more than up but would later return to the last price it was. Well to best answer that question. It's called consolidation: It's a thing that happens in the crypto market where waves of prices fluctuate up and down calculating the sells and buys of the market until it meets a point of exit - after consolidating the actual price of the market you're in, and only has two places it can go. There are two types of consolidation. The first is where it does a price correction where you have rapid 📉drops or rapid 📈rises. An lastly is a repeated wave🏄🏼‍♀️ that can run in the same location for a few hours, sometimes days, give or take how many orders were made within the past few minutes - hours - days - weeks or months. Consider it like a balloon🎈 being blown into until it 💥pops!💥 Now this is where the problem begins - we don't know where it may go once it's done, could go up or down and when that balloon has popped it's rapidly going there. We could see the 0.00002000 - range within a few hours or just see 0.00000900 range within a few minutes, depending on the orders made for shib and the rest of the market as a whole, this can last for days, weeks depending on the amount of buys or sells. Also note these are when you get the same surprise jumps like we did in 2021. It started off from the 850's and jumped to the 0.00001300 within a day. However; right behind it, is a price correction waiting for a peak in the returns to meet its end. Once that happens it'll just fall or rise back to where the price actually suppose to be and starting the process all over again. You may not know it but there are all forms of consolidations on ever chart from 1 minute to 4 hours to 1 day to 12 months. You're in a consolidation right now and you don't even know it. Like the ones that occur on a weekly chart, This is what I call "a Seasonal Trend" the day, week, or month, is in a seasonal consolidation and is trending high or low. But note anything can stop a seasonal trend and disrupt the flow of it, but it will continue the process as long as the damage done was not to bad such as major crashes in a seasonal up trend due to outside interferences such as massive sell-offs, regardless it'll still attempt to rise back because it's in a wave that's trending up-word, if the wave was trending down then it would do way more damage than expected. But the worst thing to do in a consolidation day - is to sell while it's consolidating, the price may not go no higher or no lower, and if you sell while at a low price in a consolidation you will likely lost position and will have to wait for it to finish to get more shares let alone the original shares, that's if it drops, so best to hold while in a consolidation day, at least until closing. So I hope this answers anyone question as to why your crypto stock of choice is not moving anywhere, it may not move for hours or even days. you'll just have to wait for closing hour to see if it will pop - hopefully on a positive outcome. So Happy Trading Everyone
Education
by Grandmaster_Oz
How To Trade the Triangle Consolidation Pattern!Hey Traders today I wanted to take a step back and show new traders the proper way of entering the market when it's consolidating in a triangle. Triangles are very common in trading and know how to identify them on your charts is a great tool to add to your trading arnsenal. Triangles can lead to explosive moves in financial markets so lets dive in and break it down to a science of how to trade it. Enjoy Trade Well, Clifford
COMEX:GC1!Education
by TradeTheIndex
36
✅ 4 Methods to Confirm EntriesYou should make sure that your reward is bigger than your risk. It is up to you what your optimal risk to reward should be – ideally you should have a risk to reward of 1:2 or 1:3. ✔️Trendline Reversal & Break The trader should constantly monitor both the support and resistance trendlines and redraw them as the old ones break and new ones form. When an intersection of the projections happens, one of the trendlines must be broken and the other will most likely continue to hold the price. We trade in the direction of the trendline that remained unbroken with potential entries at the trendline breaks. ✔️Support & Resistance Look at the price chart and observe the support and resistance levels that you have drawn on the charts. You will look to place sell orders at the resistance levels and buy orders at the support levels. Stop loss below the support level or above the resistance level depending the call you’re on. ✔️Fibonacci Retracement Fibonacci retracement levels connect any two points that the trader views as relevant, typically a high point and a low point. The percentage levels provided are areas where the price could stall or reverse. These levels should not be relied on exclusively, so it is dangerous to assume that the price will reverse after hitting a specific Fibonacci level. ✔️Consolidations A price consolidation is a period when the price is moving sideways without any significant advancement in the upward or downward direction. A price consolidation can take any form. It could be a rectangular pattern (often called a range), any of the different types of triangle patterns, a rising or falling wedge, a pennant, or a flag. Depending the pattern that takes place, you’re gonna look for entries and stop loss bellow pattern’s invalidation. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
1
An Idiot's Guide to EURUSD: 5 Steps to Success 💲💲💲Synopsis If you trade Forex then you know the weekends are the best time to analyse the market. Everybody likes to talk about how volatile EURUSD is, but what they don't tell you is that the market is ranging a good 80%-90% of the time; good deals do NOT last long. In fact, half of a days price movement can play out in 15-45 minutes, It's that fast. The best entries are usually snatched up in a matter of minutes, meaning that slow momentum oscillators and lagging trend following indicators don't perform well in these conditions. EURUSD in my opinion trades a lot like CL (crude WTI), where trading decisions need to be made while volatility is low to mitigate risk. Translation: if you can't win in a range, you're going to blow your account in this market, trust me. I see so many people on here setting targets 2-3 times the daily atr with the expectation that they'll be paid by the end of the day or the next day. Don't do that, please. It's not a sprint, it's a marathon. Long term gains depend on practical consistent returns, not 10:1 RRs. It's actually a lot more realistic to take ZERO to two 20-40 pip trades per day. Over the course of a week it adds up. The chart: This week we came off of a really strong bullish surge away from parity, and the market then did what it does best, range. And the way that prices are moving right now is just classic EURUSD, I love it...I get so nostalgic, because ranges like these are how I learned to trade; the way that the market recycles over and over makes it so fun to trade, it never gets stale. Since it's the weekend and the markets are closed, I wanted to take this opportunity to share with anyone who might be wondering what it's like to day trade this market. How to trade ranges: Step 1: Find your levels... The easiest way is to map out support and resistance zones. On the chart, I use my own variation of the Williams fractals indicator (I call them Neo fractals 😎) for every prominent swing high or swing low, the indicator draws a horizontal ray from the highest, lowest close and projects it out into the future. You can see the spots where lines start stacking up in a certain price range act as stronger support or resistance than the areas with only one dotted line. It only takes about 5-10 minutes per day to do this by hand though, so an indicator definitely isn't necessary. It's really important to be able to eyeball pivot points yourself anyways. Step 2: Determine market phase... After you've mapped everything out, it becomes a lot clearer what's happening in the market, and if the market is ranging or trending. If the market's ranging, you will see far more s/r lines on your chart especially once you start seeing s/r lines stacking up close to one another. A clear giveaway that the market is ranging is when price makes strong moves in one direction, only to return back from where it came, later in the day. Once you've determined what phase of the market you're even closer to spotting high quality trades. Step 3: The next step is to find areas of value... In general you want to find the areas within the range which provide the most exclusive prices, And steer away from price ranges that hold 80-90% of the activity on the cart. Being 5-10 pips in profit before a big move will completely change the way you feel about a trade when it starts to go against you (plenty winning trades will go against you, especially if you're trading reversals). On the chart you can see that the supply and demand zones only produced 2-4 trades this week, but all of them were for over 50 pips. These aren't the only trades you can take, but they're definitely the highest RR trades, you can get in a ranging market. Step 4: What for confirmation... There are so many ways to confirm a move, but my favorite for this market is a phenomena that I like to call a spike. (There's probably an actual name for it, but I'm self taught so I just make stuff up as I go 😅) Find a hammer or star candle on a higher chart like the daily or 4hr and it look at that time period again on a lower timeframe, what you'll see is that the hammer or star is actually just a large price movement in one direction followed by an equally large movement in the other direction. What might appear as a spike on a lower timeframe will appear as a hammer or star on a higher time frame, and the larger and longer the chart pattern takes to complete, the larger and longer the move will be in the opposite direction. These are the Rolls Royce of signals. When you realize that a head and shoulders pattern is really just a series of spikes, it will completely change the way that you trade. In my experience, trading price spikes alone out performs every other chart pattern there is, because most candlestick and chart patterns are made up of a series of spikes anyways. Most consolidation periods end in a large spike followed by a 1-200 pip surge in the opposite direction. They appear most often on higher timeframes as hammers and stars, or large engulfment. but on the lower time frames you can watch these things play out over 5 ,10 or even 100 periods sometimes. The key is to have very strict rules for what you consider a spike to be, how many pips? What kind of ratio are you looking for? is it happening in an area of value? etc. Step 5: The range leads to the trend... The reason that trend following strategies under perform in this market is because strong trends don't last long on EU AND getting good value is insanely competitive. The key is to spot these trends early, you have to be looking when nobody else is looking. That means waking up earlier than everyone else and having a plan in place before the move happens...Not seeing a big candle and just hopping in. I try to have a daily strategy in place before the Asian session ends, that way, I''m ready for London and NY. I live in the US, so that means I'm waking up everyday around midnight to 1 in the morning. But most of the time, if my trade starts well, I go back to bed and check back in around 7. If you want to trade EURUSD, that's what it takes though. There might have to be lifestyle changes that you have to make (especially for North and South American traders) in order to really commit yourself to this market and give your trading it the attention that it needs.
Education
by NeoDaNomad
📊Bitcoin consolidation pattern! Read the description!Hi friends, you've probably noticed that Bitcoin and cryptocurrencies start to rise or fall after consolidation. In this idea I will explain why consolidations happen, how to use this in cryptocurrency market analysis and where the next ATH for Bitcoin will be. 📊What is a consolidation? Consolidation is the small price range. Unlike a bullish or bearish trend, a consolidation is the absence of a trend. As we can see from the chart after consolidations price fall or rise for amazing %. In trading it calls "become volatile". 🔸Why consolidations happen? Actually, consolidations happen because of traders sentiment. If the price don`t move in any side this is bad for most of them. As we know, the biggest part of traders earn on the huge price movements. So when the price start consolidate there are no bull or bear power and price move in the range. 🔸What happend when the price leave the consolidation range? Consolidation is like a spring. The harder you squeeze it, the more it bounces back. It's the same with the price. For example, Bitcoin starts to rise or fall a lot when it comes out of consolidation, the spring rebound, and this has happened in all the examples in Bitcoin's history. 🔸What will happen to BTC next? For more 516 days BTC price is in $29-64k consolidation range. Now we can see the largest consolidation since 2015-2016 before the price reached ATH in 2017. 📈If we follow the rule that the longer the consolidation, the bigger the fall/rise, it's actually hard to predict what will happen next. In any case, Bitcoin will not be able to grow by 5000% in the next bull cycle because of its huge capitalization, but 600-900% growth from global lows ($20-26k) is quite possible. 🚩Traders, what do you think about this pattern? What will be the next ATH for Bitcoin in the next bull cycle based on this rules? Write in the comments, let's discuss it together. 💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
10
How to use Inside bar strategyInside bar strategy is one of my personal favourites, in this section I will detail how and why I trade Inside bars to deliver more profits during a trading week. Now In my personal opinion any non profitable trader should be chomping at the bit to learn this strategy as it has the potential to really aid your trading journey. So lets breakdown what finding an Inside bar means... So above me here is the recent rally from the pair GBP/JPY , I have highlighted a few of the inside bars but if you look close enough you will see more, So an Inside bar on the daily is telling us the day before we had a strong rally this can be called candle (1), so Candle 1 is a rally, Candle 2 is inside the range of candle 1, what this means is that on lower timeframes we have seen consolidation, Price hasnt broken the high of candle 1 or the low of candle 1, so when candle 3 breaks the high of candles 1 and 2, price rallies to our target. So the entry comes after the high of candle 1 and 2 broken, you use a stop loss under the low of candle 2, and you aim for 1:1 risk reward. When is the best time to trade these candles? In strong rallies you will see this set up form alot , the reason for this is because in strong rallies, we often see rally-consolidation-rally. Typically this strategy will win around 70% of its trades and is great for entering rallying or depreciating currencies, I hope you guys can put it to use like I have over the years! any questions please feel free too comment below (This is not trading analysis this is purely to demonstrate how inside bar works and how you can use it in your trading). Enjoy the weekend!
Education
by ZenFlo
HOW TO: Differentiate Accumulation vs DistributionHello, in this video I discuss a current active trade on AUD/JPY (see my page) and how I decide whether a consolidation phase is in accumulation for a wave up, or distribution for a wave down... I believe that the AUD/JPY pair is in a distribution phase and I explain why in the video. don't usually make videos and I'm sort of congested today so sorry if sound quality isn't subpar... :) safe trading and have a good weekend!
Education
by UnknownUnicorn37609548
Using past consolidation zones to determine key areas of S/RUsing past consolidation zones to determine key areas of support/resistance ("S/R") In this chart, I'm using a script that I've published (called " Bollinger bands + RSI Strategy" ) to determine the key areas of S/R (refer to Note 1 (below) to briefly understand how the script behind works). For the purpose of this analysis, we will ignore the performance of backtested results. We will only rely on past entry/exit price points to plot horizontal lines and treat them as S/R going forward. In the above Illustrated BTCUSD example : Marked up in freehand (lime circles), you will see that the strategy has entered long at positions of prices at approx. 35.8k, 31.8k, 34.2k, and 31k, respectively, in chronological time order. For marketable securities (or crypto in this case) that are frequently traded in high volumes, these areas of S/R tend to get re-tested in the near future. (Maybe, can imagine, it is because humans (whales) tend to see them as having meanings, and may view them as targets). Take 35.8k in the example; it didn't hold at the very beginning, shortly gets re-tested, tanks again, and up to the the point-in-time of now when this idea is being published, "it may possibly" re-test 35.8k again. -- Note1: The strategy in the underlying script simply enters into long position whenever indicators of BOLL + ATR suggest price volatility is decreasing, later exits the position when RSIs show overbought, or in alternative case when price touches the trailing-stop-loss limit. For details, you may read the summary of that strategy. Disclaimer : The idea above is solely based my personal views. This post is not an investment advice. Viewers are suggested to consider the advantages & practical limitations of the idea/strategy on their own. If this post contradicts with other school of thoughts, then viewers will apply their own professional judgment to make the prevailing investment decisions.
Education
by DojiEmoji
BTC Consolidation... Then off to the moon! Bitcoin is consolidating at the same price range as it did back in January. Once we broke that STRONG Resistance, it flipped to Support while BTC Ranged up. Now that same critical level is back to being a Resistance Area. The longer a coin/token consolidates, the stronger the Breakout will be. Think of it as a wall, and the more times we hit it in a short period, the more likely it is to break. Right now, Bitcoin is coiling up, ready to strike. The bulls stepped in with force and held the line $29,500. If you are newer to crypto and just got into the market this year, then you've only experienced up, and this is your first significant drop. You won't ever forget this, I'm sure of it. Take the lessons presented during these events and forge them into your psyche as they will continue to benefit you over and over the longer, you stay in this market. Remember, the market must cause the most amount of people the maximum amount of pain. When you invest and pull a 2-3X, take your initial $ out of the position. Always cover your ass and manage your risk. For now, we stay range-bound from $30k-$42k. We are in no way out of the woods just yet, but we dodged a massive nuke in the market. Depending on what your strategy is, continue to DCA into BTC and strong adults. It's not about timing the market; it's about TIME IN THE MARKET.
INDEX:BTCUSDEducation
by PlanDeFi