When a consolidation is still alive

Traders often declare a consolidation “done” the moment price prints outside the prior high or low. In the studio we treat that candle as a question, not an answer.

Boundaries that still contain price

A living consolidation keeps returning to the same upper and lower edges. Wicks may pierce those edges without relocating value. If most of the subsequent bars still spend their time inside the old rectangle, the range remains the working structure — even if a dramatic wick made the screenshot look decisive.

Clues the range has finished

• Multiple closes beyond the boundary with expanding range
• Volume that rises on the departure and does not immediately reverse
• A failed attempt to re-enter the old mid-range that leaves price stranded outside

None of these clues is absolute. They are filters you write into your own rule sheet after you have marked enough charts by hand.

A classroom habit

On unmarked charts we forbid entry arrows until every student has stated whether the consolidation is living or finished — and why. That single pause removes a surprising number of impulsive breakout stories.