A continuation price pattern, when prices are trading in a confined area between two parallel flat lines. It is also known as range or consolidation. Even though it is expected to break out in the direction of the prevailing trend, it is not unusual to break out in the opposite direction. If volume information is available, it may hint in the break out direction well before it happens, as price movement tends to be higher or heavier in the direction of the breakout. Breakout of the range should also be accompanied by heavy volume to be considered valid. Measuring implications are calculated as the width of the range.
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