I knew a trader on another board who specialized in this type of setup that you pointed out. There's an entire forum on it called Consolidation Zone trading...CZ for short.
That rascal could nail trades coming and going using CZ setups. I understood it to a degree but I wasn't as successful as he was at playing them.
It's definitely on my checklist now for things to watch...another H.O.T. list item.
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