Nas100 consolidation patternUS 100 IndexFX:NAS100Thecantillonreport Daily timeframe perspective. This is what healthy consolidation looks like after a major rally. The Setup: April-November: +44% rally from $18K to $26K November-January: 3-month consolidation at $24.5K-$26K The volume profile (horizontal bars) shows WHY we're consolidating here: The yellow cluster at $24,500-$25,500 represents the Point of Control. This is where the most trading has occurred. Institutions are committed at these levels. When you see heavy volume concentration in a tight range like this, it means: • Buyers and sellers are in equilibrium • Neither side has decisive control • Price needs a catalyst to break out Compare this to areas with thin volume (like below $22K or above $27K) where price moved quickly because there was no resistance. The Pattern: After big rallies, markets need to consolidate. This serves three purposes: 1. Shake out weak hands (traders who bought the top) 2. Allow new buyers to enter at "fair value" 3. Build energy for the next directional move We're in phase 2 right now. What Happens Next: Consolidations end in one of two ways: 1. Continuation (breakout higher) - 60% of the time after uptrends 2. Reversal (breakdown lower) - 40% of the time The volume profile will tell us which: If we break above $26K with increasing volume = Continuation confirmed If we break below $24.5K with increasing volume = Distribution confirmed Until one of those happens, we wait. The Lesson: Most traders lose money in consolidation because they try to predict the direction. Smart traders wait for confirmation. Don't guess. Let the market show you. --- Questions about reading consolidation patterns? 👇 #Trading #TechnicalAnalysis #VolumeProfile