Trading consolidations ?

[Battle Axe]

First of all, what's a consolidation?

It's a period of indecision in the market where it's difficult to identify a particular direction.


So how do you trade it?


Well, you DON'T trade DURING a consolidation.


You may lose your hard earned money if you try to do so because there's no specific pattern.


So what do you do?

You mark the area out and wait for a BREAKOUT. After which you enter a trade.

But you need to be careful too becauseone of three things may happen.


1) A False Breakout

2) A real breakout or

3) A retest/pullback


So, just OBSERVE.

Better still, if you're confused, just leave the market because you don't need to trade ALL the time..