Feed: Stock Day Trading And Trading Congestion Action - AggScore: 1.3

Stock Day Trading And Trading Congestion Action

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p Today were going to talk about congestion action trading . A market that is in congestion action is a market that oscillates back and forth between the confines of congestion , between support and resistance or, in Drummond Geometry terms, between the dotted line and the block level . Within congestion this market action occurs, and when there is not a trend run. The level that was created by the preceding up trends highest high is what is referred to as the Dotted Line, or the very lowest low that the preceding down trend created. In an uptrend the first bar that closes on the PLdots opposite side is known as the first Block Level, or the high of the first bar that closes on the other side of the PL Dot in a down trend .br br After you have a working knowledge of the patterns, characteristics, and theory of congestion action trading, you can make a lot of money in this type of market . It is like harvesting a crop, or slaughtering the fatted calf . You can earn your bread and butter with congestion action trading....and whats more , you can purchase a table for the bread , and a house for the table , and the estate to hold the house , and a car, driver, plane, boat, and anything else you want . Essentially, there is a lot of potential in congestion action trading , if you take congestion action trading and learn all you can.br br What is congestion action trading br br One result of a targetblank hrefhttpbit.lybs3ZkOstock day tradinga with Drummond Geometry is that the definitions are clear . Price is either in a trend run or it is not . It is not is a trend run when after three or more closes on one side of the PL Dot it closes on the other side of the PLdot . When the market is not in a trend run, then it is in congestion . Its all quite simple.br br The first bar when there is a close on the trending dots opposite side is the congestion entrance bar . Then it can be said that the market is in congestion by definition . When congestion is first entered we know that this creates a dotted line and a block level . This block level is the first block level of the congestion . This means, congestion action is the name for that market action which starts with a congestion entrance bar and continues for an indefinite period of time until we see three closes on one side of the PLdot , which marks the start of a new trend .br br Now lets look at the way the limits of congestion are defined with a targetblank hrefhttpbit.lycmsuafstock day tradinga, as well as how expansion can occur .br br Congestion action defines the parameters of congestion , which is also known as the confines of congestion . You will remember the block level and the dotted line are what define the confines of congestion , and that the first block level is established by the congestion entrance bar . These levels can be expanded upon. If the price goes outside of the block level or dotted line , while congestion is still in effect that is, without showing three closes on one side of the PL Dot , then the confines of congestion are being redefined by price and there can be established an even larger congestion . This can happen several time before you see a new trend run .br br Next time well talk more about congestion trading in the a targetblank hrefhttpezinearticles.comTechnicalAnalysisExplainedHowtoTradeinaTrendampid3629282technical analysis explaineda series.p