What is Consolidation?

Metals Price consolidation in metals trading is when metals prices stop moving upwards or downwards in a metals trend & begin to move sideways in what is known as a consolidation.

Metals Price will continue to consolidation and move sideways for a period of time until such a time that one side of the metal market - either the buyers or the sellers gain control of the metal market and either push metals prices upward in an upward metals trend or push metals prices downward in a downward metal trend.

Consolidation Metal Chart Patterns

Symmetrical triangles are metal chart patterns with converging metals trend lines that form a consolidation period and are used to trade the metals price consolidation.

Technical buy point from a symmetrical triangle is the up-side break of metals price consolidation, while a downside break of the metals price consolidation is a technical sell metals signal. Ideally, a market breaks out from a symmetrical triangle prior to reaching apex of the triangle.

When these metals price consolidation patterns form we say that the Metals market is taking a pause before deciding which is the next direction to take.

What's Consolidation in Metals Trading? - What is Metals Price Consolidation in Metals Trading?

However, this metals price consolidation pattern cannot go on forever and just like in a tug of war one side eventually wins, below are 2 examples of how metals price consolidation eventually had a breakout pattern and moved in one specific direction.

Metals Trading Price Break-out Downward Sell Metals Signal after a Consolidation - What is Consolidation in Metals Trading?

Metals Price Breakout Upward Buy Metals Signal after a Consolidation - What is Consolidation in Metals Trading?