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Any tips on Price Action or chart patterns indicating impending consolidation?
I have been focusing on options trading, particularly Calendar Spreads and Iron Condors. Can anyone share any tips on chart analysis and/or price action patterns that often indicate an underlying is going into consolidation? What have you seen in your years of trading experience, looking at price charts, that almost always shows price is about to stall?
For obvious reasons this kind of advice would helpful ahead of any strategy taking advantage of neutral price action.
Maybe I'm not reading your question right but from experience price going back below previous resistance usually means a stalled action. Price action itself is the greatest indicator there is.
What I mean is a set of circumstances (price action, indicators, etc) that usually indicate price is no longer trending and about to go into consolidation. For instance, I often noted during my time trading Forex that Bollinger Band 'squeezes' almost always indicated price was stalling or about to go sideways for a few candles.
This is the sort of thing I was looking for tips on: specific price action candle patterns or certain indicator values which others have noticed presaged a flattening of price.
