Typically, consolidation phases are easier to spot on higher time frames (daily or weekly charts) and occur when an asset is cooling off after an upward or downward trend.
Consolidation occurs when a price trades sideways or within a range. Typically, consolidation phases are easier to spot on higher time frames (daily or weekly charts) and occur when an asset is cooling off after an upward or downward trend. Consolidation also appears ahead of trend reversals or when demand is low.