What are consolidation periods and the role of mobile media?

Periods of consolidation occur when the market oscillates within a narrow range, reflecting a pause after major moves. These indicate a balancing of buyers and sellers, setting the stage for a new direction. Mobile environments play a key role in understanding these moments:

1. Dynamic Support and Resistance: Price tends to test moving averages (eg MA50 or MA100) as areas of support or resistance. In consolidation, they become important guides for future movements.

2. Trend Confirmation: If price remains above a moving average, consolidation may indicate a bullish continuation. If it stagnates below an average, it may portend a reversal.

3. Declining Volume: During consolidation, declining volume confirms market indecision and moving averages provide a reference point for breakouts.

Thus, periods of consolidation are not just "pauses," but strategic opportunities. Tracking price against moving averages helps you identify key moments for effective entries and exits.