Hi guys. I know that according to the rules, healthy consolidation is just a natural part of a stocks trend before the next leg up. But what I'm trying to understand is what makes consolidation a good sign?

 

The way I see it, the more people buying during consolidation in a small channel means a lot of buyers who are buying anticipating a spike. So the stock has already had a ton of buying at the same price range which hasn't been powerful enough to make the price jump up because theres too many sellers. Now it needs a whole new set of buyers to push the stock price up. And then that finally happens, everyone who bought during the consolidation is going to be selling in order to lock in profits. Wouldn't that drive the price down and stuff the move? Or is it that when the stock finally breaks there are so many chasers and newbies buying that it overpowers all of the selling that the consolidation buyers will be doing? 

Please help me understand. Thanks