In markets, periods of consolidation are like a waiting room, where neither buyers nor sellers hold the upper hand. The longer this period persists, the more anticipation builds. Consolidation reflects indecision, but it’s also where pressure accumulates. Much like compressing a spring, the potential energy grows with time. When the breakout eventually occurs, whether upward or downward, it often leads to an outsized move.
Historically, we’ve seen this pattern repeat. T...