Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
By "Consolidation" you mean as in ADX below a certain threshold?
Or as in BollingerBand squeeze?
Just plot them as indicators in your chart to show consolidation.
Or include them as conditions in a strategy.
Great point! Yes I mean a price consolidation, trading in a tight range, with lower volume and the price does not really go outside the support and resistance.
I mean more of a price consolidation where it has a support and resistance and doesnt really go out side of those two. Normally will have lower volume within that range.
I would say the support would be the low of X bars back and that low remains the support as long as another low is X % within the low, so the low would go with say for example .05% above and below that low If a low is outside of that % then that is the new support to be tested. The Resistance would be the reverse but for the high. The ATR is descending or potentially even and the volume is lower then the average.