If there are consecutive stop losses, or if the market hits a stop loss and then returns to the original trend, is this because the market is in consolidation?
Here, I will explain this issue from the perspective of a trader. If I were an analyst, I would likely tell you it is because the market is consolidating. In fact, the vast majority of people’s first reaction is also this way. However, you need to understand that the reason you trade is not because the market is consolidating, because those who trade trends do not participate in visibly apparent consolidations. You participate for two reasons: first, because a trend is occurring in the market, or you have discovered a potential for large fluctuations in the market through some means; second, because your strategy has issued a signal.
Thus, losses, consecutive stop losses, and whether the market is consolidating have no relation whatsoever. Of course, we can only say this if you have a correct foundation. If your understanding is wrong, then first resolve the technical issues, such as how to define a market reversal, how to set proper stop losses, how to establish emergency plans, and at what level to establish this plan. If at this point you still have not found the answer you are looking for, then expand on several keywords from my previous sentence in your mind and see how much content you can think of. That encompasses the entirety of concepts and techniques.