Hi?
Can someone explain me psychology behind formation of consolidation and can we trade on upper n lower boundary of consolidation in HTF
IMO, scalping trading consolidation candles are more suitable for lower time frames. A five minute TF is popular.
The psychological position is a rest area for both bulls and bears until there is enough volatility to engage in a breakout of the zone by institutional traders, and will mainly be determined by their view of fundamental economic analysis.
You could experiment on the Indices, as DAX, DOW, and FTSE using Heiken Ashi candles as they provide a clear-cut picture of market movement.
Thank you for replying.