Some kinds of analysis are more efficient than others, it is up to the traders however to tune those form to their own attributes, involving what they intend to invest upon as well as exchange in due process. Splitting the ranges on a particular level may bring more data than any other alternative, which in fact produces quite the results, if correctly divided through the patterns that presumably have appeared.
Every range can be found upon locating two distinctive points, where the market area is trying to reverse, just to begin with the calculations. Upon reaching at least two points, the traders can reconnect them with a trend line which is going to give the eventual finale that one is actually hoping to achieve.
This projection allows to define if there will be any support or resistance level available, strictly dependant on either the market proves to be bearish or bullish in nature. Consolidating those features will bring us to the next stage, during which the participants may copy now the lines into the upper or lower side, generating a specific form of a channel.
The next thing to do would be dividing the actual range on the channel ratio, as it can be done also by a Fibonacci retracement. Afterwards, it can be finally decided, if the upper or lower part of the range will become buyable with put options and call options whenever it proves to be in bullish form. More recent news on such issues are always provided first hand on websites the likes of which information is priority, such as Reuters.
As far as the consolidation area goes, there will be certain precautions to it and more whenever it will become the actual progress of any rate indicated thereby. The expiration date factor can still have an impact and should be considered with caution, whenever the time frame is far too low.