Consolidation refers to a period in the market when the price of an asset trades within a tight range, usually after a period of strong price movement in one direction. During a consolidation period, the market is said to be range-bound, with the price bouncing between a support level (lower boundary) and a resistance level (upper boundary) without breaking out. This can occur in any financial market, including stocks, currencies, commodities, and cryptocurrencies, and can provide trading opportunities for traders who use range-based strategies.