Identifying Consolidation

[albazzaztariq]

Is there an indicator which can identify consolidation? I am trying to use Swing with the RangePT (RangePT was a custom indicator posted by someone on here) and say when RangePT and Swing are approximately the same, that can be considered a consolidation. However, I'm having trouble with it and I was wondering if there's an easier way. Thanks

[NinjaTrader_Bertrand]

albazzaztariq, I think you really raise the #1 question here for many traders...there cannot be a definitive answer however different approaches come to mind -

- ADX and its derivates like velocity
- expected average ranges and the failure to achieve those
- volume based identifications
- seeing Lower Highs, Higher Lows back to back
- non time bar based approaches and then for example counting the swing legs

I think if you combine of those with the time of day you will be able to filter better. However some breakout systems also deeply suffer then from not catching the final breakout trade out of the range area, so the losses prior had to be accepted in order to take this one then...

[sledge]

Is there an indicator which can identify consolidation?

That depends on your definition.

Ttm_squeeze could be close. It uses Bollinger and Keltner.