Consolidation Ranges Vs Small-Scale Consolidation

There're two types of consolidation:

1) Consolidation ranges

2) Small Scale Consolidation

A consolidation range is a type of trend where the market moves from one high to a low, repeatedly over a long period of time. This is most easily viewed on higher time frames, the daily/weekly time frames.

Example 1)

Here we can see price lumbering between two points over a long period of time, However there is an anomaly towards the end and price breaks its consolidation patter and begins an uptrend. Asset is USDCAD

Example 2)

Here we can see an example of Small Scale Consolidation Which is defined exactly by what it sounds like, consolidation on a smaller scale. The reason a distinction between these two types of consolidation is necessary is because they indicate different things.

Consolidation ranges indicate entry opportunities. Small Scale Consolidation indicate market uncertainty.

Small Scale Consolidation (SSC for short) Happens after large market moves and indicates the end of one move and the markets preparation for another move.

SSC is not a retracement or pull back. The main distinguishing factor between SSC and a pull-back is duration. SSC can alot longer, potentially months, But its rare to see a pullback last longer than a couple weeks