What is Consolidation in Commodities?

Commodities Price consolidation in commodity is when commodity prices stop moving upwards or downwards in a commodity trend and start to move sideways in what is known as a consolidation.

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

Symmetrical Triangles

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

The technical buy point from a symmetrical triangle is the upside break of commodities price consolidation, while a downside break of the commodities price consolidation is a technical sell commodity signal. Ideally, a market breaks out from a symmetrical triangle prior to reaching the apex of the triangle.

When these commodities price consolidation patterns form we say that the Commodities market is taking a break before deciding the next direction to take.

What is Consolidation in Commodity Trading? - What is Commodities Price Consolidation in Commodities?

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

Commodity Trading Price Breakout Downwards Sell Commodity Trading Signal after a Consolidation - What is Consolidation in Commodities?

Commodity Trading Price Breakout Upwards Buy Commodity Trading Signal after a Consolidation - What is Consolidation in Commodities?