Often used in day trading, Consolidation, also known as trend channeling or sideways trending, is defined as a range in which a stock is trading between horizontal support and resistance levels.
If the stock breaks consolidation support with strong volume it is known as a bearish (Bearish Market Sentiment) consolidation breakout and continued downside action is likely.
Inversely, if the stock breaks horizontal consolidation resistance on strong volume, this is known as a bullish (Bullish Market Sentiment) consolidation breakout and continued upside with this is likely.
Consolidation Breakouts are frequent, and used in options trading, futures trading, along with all times periods of stock trading.
Here's an example of a bullish consolidation breakout pulled straight from the live trading room: