Consolidation
Price moves sideways in a tight range, showing market indecision or accumulation.
- Low volatility period
- Decreasing volume
- Builds energy for next move
- Identify higher timeframe zones
Expansion
Breakout occurs with strong momentum in a clear direction.
- Breaks consolidation range
- High volume confirmation
- Strong directional move
- DO NOT chase the breakout
Retracement
Price pulls back to test the breakout zone
- YOUR ENTRY POINT
- Healthy pullback on low volume
- Tests breakout level as support
- Look for rejection candles
- Volume Profile POC critical
Continuation
Price resumes in breakout direction after successful retest.
- Confirms trend strength
- Target 2:1 Risk/Reward
- Trail stop if strong momentum
- Monitor volume for continuation