Consolidation is used in technical analysis to describe the movement of a stock’s price within a well-defined pattern of trading levels. Consolidation is generally regarded as a period of indecision, which ends when the price of the stock moves above or below the prices in the trading pattern.

Market consolidation occurs at the time when supply and demand for the financial instrument are approximately equal.
Trading in consolidating market should be avoided as it lacks movement and defining particular direction of market is pretty difficult.