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The longer-term euro chart shows the two year-old consolidation pattern in a larger context.
Breakaway Gap: Usually, a high-volume move out of a consolidation pattern.
Breakdown: A price drop below a significant support level or out of a consolidation pattern.
Furthermore, retrospectively the disappearance of the lung consolidation pattern after a RM confirms the diagnosis.
Of course, technical confirmation is still needed in the form of a convincing breakout or breakdown from this consolidation pattern.
It has a high sensitivity and specificity for detecting lung collapse which appears as a LUS consolidation pattern [13, 15].
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I showed several consolidation patterns that I believed could have led to another leg of the rally.
Wedge patterns are consolidation patterns that often foreshadow large moves ahead when the pattern is finally broken, in one direction or the other.
From a technical analysis standpoint, however, it appears that China's stock market is forming consolidation patterns that likely indicate another sharp move ahead.
For now, I will continue to watch which direction the dollar and euro ultimately break out from their multi-year consolidation patterns.
As with the bounce in July, there's a strong risk that the placid trading of the past month may actually be the calm before the storm if the consolidation patterns shown in this piece break to the downside.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com