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Consolidation Definition

Consolidation describes a period where an asset's price trades within a relatively narrow range rather than trending strongly.

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What is Consolidation?

Consolidation often occurs after a strong price move, as the market pauses before determining its next direction.

Breakouts from consolidation ranges are frequently monitored by technical traders.

Example of Consolidation

A stock trading between $90 and $95 for several weeks after a rally is in a period of consolidation.

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