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hi welcome to this video on consolidation Im going to be talking to you about what consolidation is and how to identify it on a chart consolidation is an area where neither sellers or buyers are in control and so what youll see on a chart is just a narrow sideways trading action were looking at a daily chart on Youku symbol Y okay you lets go ahead and mark some consolidation areas on this chart you can see some areas of consolidation right here in between these two lines notice when it broke down it gained some momentum came down and we have another area of consolidation right here where its trading sideways you could watch for a breakdown below or you can watch for a breakout up above which is what happened it gapped up broke out of this consolidation area and just made it a nice move up so these areas are important to watch not only now but in the future this area of consolidation here if you extend this line out most likely its going to cause some resistance here when the pr
