Options Glossary

Glossary: Consolidation

Last Updated: July 12, 2015



What Does Consolidation Mean in Options Trading?

It's the common phenomenon in stock market or security's price movement, when the price goes nowhere and stays in between upper resistance and lower support levels, because of profit taking by investors after a large trending move.
Consolidation allows traders some time to estimate their next strategic trading move to take advantage of profits.

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