This is where the price is moving sideways, accumulating orders as it finds orders in the market (Areas of Balance). This is otherwise known as the consolidation zone.
This is where prices move away from the consolidation zone breaking to new areas of balance.
A consolidation of price centred between 2 parallel trend lines.
This often leads to price breaking higher.
They are notorious for reversal signals oftren found at the tops and bottoms of a chart. They can be shorted below the neckline.
Flat top or bottom consolidation, price forms a tight wedge that eventually leads to a breakout, and these breakouts are often very powerful.
This is very similar to the flag pattern, this formation consolidates towards a major break out, however, indecision is more prevalent here as buyers and sellers are matched and the price can go either way. Caution is advised when trading such a patter, and reference to FA should be made.