A bullish pattern unfoldingA consolidation pattern appeared in our model and this is amazing because this is a 2 years consolidation pattern which is quite rare to see.
Consolidation phases in the stock market refer to periods of time when the price of a particular stock or the overall market is relatively stable and not showing significant trends in either direction. These phases can be seen as a "pause" in the market's overall trend, and they can last for varying amounts of time. Consolidation phases can occur in both bullish and bearish markets.
In a bullish market, consolidation phases may be viewed as an opportunity for traders to take a break from buying and selling, or to reassess their positions and make any necessary adjustments. Some traders may see consolidation phases as an opportunity to buy into the market at a lower price, while others may choose to hold onto their existing positions until the market starts to trend upward again.
It is important to note that consolidation phases do not necessarily indicate a change in the market's overall trend. In a bullish market, for example, the market may continue to trend upward even if there are periods of consolidation along the way. As such, it is important for traders to use other forms of analysis, such as fundamental analysis, to determine the market's overall direction and make informed trading decisions.
Finally, this consolidatio phase is clearly limited by an upper trendline which could help us to trade this pattern.
If you buy in the consolidation pattern you can be trapped for months in a choppy market, but if you buy once the upper side has been broke, you can enjoy a fast rally with more probabilities. The zone between 1750 and 1800 looks great to take profits.
