noun
consolidation
A period when market prices move within a narrow range without a clear trend.
The stock enters consolidation as its price stays within a narrow range.
Etymology
The Latin verb means to make firm. Market consolidation applies the settling image to prices holding within a range while the preceding movement pauses.
More examples
- Traders watch for a breakout after weeks of consolidation.
- During consolidation, the index fluctuates between 4,900 and 5,000.
- The chart shows two brief consolidations between sharp price increases.
Forms
consolidation · consolidations
consolidate verb — To trade within a narrow price range.
Similar words
- sideways trading
- Emphasizes trading without a trend, rather than a bounded period.
- trading range
- Describes price boundaries rather than the period of sideways movement.