Consolidation Pattern Risk Management
Consolidation and Range Pattern provides a complete trade management framework with three configurable take profit targets, a minimum risk/reward ratio filter, optional target boxes, and an integrated position sizing calculator.
Three Take Profit Targets
The indicator projects up to three take profit levels based on the range height — the vertical distance between the upper and lower consolidation boundaries.
| Setting | Default | What It Controls |
|---|---|---|
| TP1 (%) | 100% | First target — 100% of the range height from breakout |
| TP2 (%) | 150% | Second target — 150% of the range height (optional) |
| TP3 (%) | 200% | Third target — 200% of the range height (optional) |
TP2 and TP3 can be independently enabled or disabled. Only TP1 is used for the risk/reward ratio calculation that gates whether a trade setup is displayed.
Minimum Risk/Reward Filter
The minimum RR ratio filter prevents the indicator from displaying trade setups where the risk/reward is unfavorable. If a breakout produces a risk/reward below the configured threshold, the TP/SL visualization is suppressed.
| Setting | Default | What It Controls |
|---|---|---|
| Min Risk-Reward Ratio | 1.1 | Minimum RR based on TP1. Trades below this threshold are hidden |
This filter ensures every trade setup shown on the chart meets your minimum profitability criteria.
Stop-Loss Placement
The stop loss is automatically placed based on the pattern's structure — positioned at a level where the consolidation breakout thesis would be invalidated.
Target Boxes
Target Boxes are optional price projection zones that appear above and below the consolidation range upon breakout. Target Boxes mark the price areas where the chart is likely to run into after a breakout.
| Setting | Default | What It Controls |
|---|---|---|
| Target Boxes | Off | Display price projection zones above/below the range |
Trade Visualization Styles
Three visualization presets control how trade levels are displayed on the chart:
| Style | What It Shows |
|---|---|
| Compact | Minimal display — key levels only |
| Detailed | Full display with labels, percentages, and RRR values |
| Intuitive | Balanced display for quick visual assessment |
Position Sizing Calculator
An optional position sizing calculator integrates your account size and risk parameters directly into the trade setup.
| Setting | Default | What It Controls |
|---|---|---|
| Use Risk Management | Off | Enable the position sizing calculator |
| Account Size | 10,000 | Your trading account balance |
| Risk % | 1.0% | Maximum risk per trade as percentage of account |
When enabled, the indicator calculates the appropriate position size for each trade based on the distance between entry and stop loss.
Start with 1% risk per trade and review the Statistics table to validate your settings before increasing risk.
FAQ
How many take profit targets does the Consolidation and Range Pattern provide?
The Consolidation and Range Pattern indicator provides up to three take profit targets. TP1 defaults to 100% of the range height, TP2 to 150%, and TP3 to 200%. TP2 and TP3 are optional and can be disabled independently. Only TP1 is used for risk/reward ratio calculations.
What is the minimum risk/reward ratio filter?
The minimum RR ratio filter (default 1.1) prevents the indicator from displaying trade setups where the risk/reward is unfavorable. If a detected breakout produces a risk/reward below the threshold, the TP/SL lines are not drawn and no alert is triggered.
How does the position sizing calculator work?
The optional position sizing calculator takes your account size and risk percentage per trade, then calculates the appropriate position size based on the distance between entry and stop loss. Enable it in the Risk Management settings group.