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A consolidation is a period of range-bound activity after an extended price move. Consolidation illustrates the lack of a trend in a particular trading range. Price has ?consolidated?. It frequently occurs after downtrends or uptrends and can be seen as a stretch of indecision.

In other words, it's when two companies (or more) merge and become one. Many of the world's largest corporations were formed by business consolidation, while more recent examples include Facebook's acquisition of Instagram and Disney's acquisition of Fox.