Many traders find they can make money trading in bullish markets, but when there is a major correction underway or when the market has turned bearish, they literally freeze and are unable to trade successfully or find profits in their trading. Discover how you can trade profitably in a bear market and not be slaughtered.
The Art Of Trading – How To Trade During A Consolidation or Congestion Phase
During a consolidation period, prices oscillate between a small range as supports comes in to prop up falling prices and resistances become formidable barriers to force prices to fall back to support levels. This type of trading action forms an easily identifiable pattern called a “channel” or “rectangle”. How should a trader trade during consolidation or congestion phases?In this article Peter Lim explains how one can trade the consolidation phase.