Consolidation
Also called: base, sideways action
A pause where price trades sideways in a tight range, digesting a prior move before the next one.
Consolidation is a period of balance — supply and demand roughly equal — that shows up as a sideways range, a flat base, or a tight coil. It often follows a sharp move as the market absorbs it and sets up the next leg.
Tighter, longer consolidations on drying-up volume tend to produce cleaner breakouts, because they build a clear level that a surge in volume can decisively clear. Volatility contraction is the engine behind many of the best setups.
On StockSetups
StockSetups' 'setting up' lane is exactly this: names consolidating in a tight base, flagged before they break so you can watch the coil rather than chase the move.
Related terms
See consolidation on tonight's board.
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