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The Bullish Reversal Consolidation Pattern

 

First, the bears and bulls will begin to fight very tight to form the consolidation zone.

From time to time, the width lines become more and more narrow towards the upward resistance line; it means the bullish line is winning the market.

By then, the bearish line finally couldn’t maintain its level and let the bullish line break through the resistance line, at that time, a new move begins—the bullish market will once again control the market price and goes up high.

Traders who buy just after the bullish line breaks the resistance line will gain profit from it. All this movements are cause by traders’ sentiment.


Figure 13

 

 

 

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