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Three Faces of Consolidation: How the Same Rally have 3 Faces
Media Three Faces of Consolidation: How the Same Rally have 3 FacesBalu Forge Industries Ltd NSE:BALUFORGE Averoy_Apoorv_Analysis MediaThis post is educational and observational in nature based on historical price action. It is not a forecast or a trading recommendation.
Setup: The Bullish Rally
This chart begins with a strong bullish rally, the foundation from which three separate consolidation structures went on to form at different points along the stock's journey.
Pattern One: The Triangle
Following the initial rally, price consolidated into a triangle pattern, converging highs and lows compressing into a tighter range as the market paused to absorb the prior move.
Pattern Two: Inverse Head and Shoulders on a Slanted Trendline
After another rally, price formed an inverse head and shoulders pattern, a reversal structure built from a low, a deeper low, and a higher low. What makes this instance distinct is that its neckline was not a flat horizontal breakout level, but a slanted counter trendline instead, with a symmetrical triangle also forming along this same slanted structure. This combination shows how a reversal pattern can develop against an angled reference line rather than the more commonly seen horizontal one.
Pattern Three: The Parallel Channel
Following the next rally, price settled into a parallel channel, contained between two consistent, roughly equidistant boundaries, reflecting a more evenly structured consolidation phase compared to the converging patterns seen earlier.