Consolidating markets give traders an opportunity to enter low risk high return trades. The ability to spot breakouts enables traders to enter a trend near its beginning and catch a greater portion of the move. It is very difficult to predict market peaks and valleys, and even more difficult to make money in a market that is trading within a narrow range because you can neither buy low nor sell high. However, a market that has been trading sideways for an extended time may be ripe for a major move.
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