2007-03-09 19:58:38 · 3 answers · asked by venkat.personal 2 in Business & Finance ➔ Investing
An easy way is to look at the bollinger bands. Apply the Bollinger band indicator and when the band starts sqeeeeezing tighter and tighter, that's a good sign that your stock is consolidating.
In words, stock runs, then rests. While it rests, it stays in a "sideways" range for a while, while it builds up energy for its next move. That's the consolidation phase.
Hope that helps!
2007-03-13 11:33:18 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
I dont know what you mean by strokes. Is it breakout?
If the stock is range bound (mean to say it is trading within a certain range ) then the stock is said to be consolidating. If it breakouts of this range for two continuous ticks, its a buy signal
2007-03-10 09:38:39 · answer #2 · answered by Livenewss 1 · 0⤊ 0⤋
if change in stock price is more but the volume of stocks trade is less ....then that stock is in consolidation phase
2007-03-10 13:02:05 · answer #3 · answered by k7 2 · 0⤊ 0⤋