Finding the First Phase: Using Consolidations to Capture Moves!

This week, we're focusing on how consolidations set up the biggest moves in the market.

Next week, we’ll track consolidations on a hand-drawn intraday chart—either 1H, 2H, or 4H (still deciding on the best fit).

Key Observations from the Study

- 87.5 percent of consolidations (7 out of 8) showed manipulation at one end before expanding in the opposite direction
- Average consolidation duration: 18.6 hours
- Many consolidations form at key daily levels, where price reacts and builds orders before expanding
- Consolidations act as magnets—high-volume areas where price often returns before the breakout

Why This Matters

- Expansion equals opportunity—but consolidation sets it up
- Liquidity grabs equal high-probability trade locations
- Daily key levels plus intraday consolidations refine execution

Execution Plan

- Use daily key levels to frame trade locations
- Find and mark consolidations on intraday charts before expansion
- Identify liquidity grabs (springs and upthrusts) for entry
- Scale into positions before the expansion leg

Objective

The goal remains the same—catch as much of the weekly range as possible.

By refining the process of identifying consolidations before expansions, we can position early and capitalize on the largest moves of the week.

Let’s track how consolidations set up the biggest market moves and refine execution throughout the month.

Do you track consolidations before expansion How do you approach them in your trading?