How to Read a Consolidation Chart Pattern
How to Analyze Consolidation Chart Pattern
Consolidation xauusd patterns - to trade consolidation chart patterns gold traders need to learn about consolidation chart pattern technical analysis.
Interpret a Consolidation Chart Pattern
Consolidation xauusd chart patterns are xauusd chart patterns with converging trend-lines that form a xauusd price consolidation period.
A buy signal from a consolidation chart pattern is the upside xauusd price breakout
A sell signal from a consolidation chart pattern is the downside xauusd price breakout.
Ideally, the xauusd price breaks out from the consolidation chart pattern prior to reaching the apex of this consolidation chart pattern which looks like a triangle.
Gold Trend lines can be drawn connecting the xauusd price lows and xauusd price highs of the consolidation phase of the xauusd price, the trend lines formed are symmetric and converge to form an apex - this pattern resembles a triangle.
After a xauusd price breakout from the consolidation chart pattern - the apex forms support and resistance levels for the xauusd price. Gold price that has broken out of the apex of the consolidation chart pattern should not retrace past the apex. The apex of the consolidation chart pattern is used as a stop loss order setting area for the open xauusd trades.
When consolidation patterns - traders say that the gold market is taking a pause before deciding next direction to take.
Consolidation xauusd chart patterns form when there is a tug of war between the gold buyers and the gold sellers and the gold market cannot decide which direction to move.
How to Read a Consolidation Chart Pattern
However, when this consolidation chart pattern forms it cannot go on forever and eventually the xauusd price will break out to one side - from the gold chart examples below the consolidation pattern eventually had a xauusd price break out & moved in one direction.
Consolidation Chart Pattern Gold Price Breakout Downwards - Read a Consolidation Chart Pattern
Analyze Consolidation Chart Pattern
Interpret a Consolidation Chart Pattern
