Consolidation or Reversal.

Narrow, tight ranges suggest indecision in the market. These ranges will soon resolve into a breakout or a breakdown. Moves out of trading ranges are often, fast and furious. They offer excellent opportunities to the short term trader but require quick response to fast changing market conditions.

Here is a 15 minute chart for the cash Nifty which shows three such ranges, two of them offered profits while the third is poised to break out / down. Traders should search for tell-tale signs that provide early warning of the direction in which these ranges will break out.