Congestion action trading and trade stocks online is the topic for today. A market in congestion action is one that goes back and forth between congestion confines , between resistance and support (or, in Drummond Geometry terms, between the dotted line and the block level ). Within congestion this market action occurs, and when no trend run is occurring . The level that was created by the preceding up trend's highest high is what is referred to as the Dotted Line, or in a down trend, the lowest low . The first Block Level is the low of the first bar that closes on the opposite side of the PLdot in a uptrend , or in a down trend, the high of the first bar to close on the PLdot's other side .
Once you have a sufficient understanding of the theory, characteristics, and patterns of congestion action trading , you can really make money. It is like harvesting a crop, or slaughtering the fatted calf . You can earn your bread and butter with congestion action trading....and what's more , you can buy the table to hold the bread , and the house to hold the table , and then an estate for the house , and a car, driver, plane, boat, and anything else you want . Basically , there is a lot of potential in congestion action trading , if you take time to learn everything you can about it.
What exactly is congestion action trading anyway?
One outcome of trade stocks online this way through 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 . If there is no trend run, then the market is in a congestion. It's all quite simple.
The first bar when there is a close on the trending dot's opposite side is the congestion entrance bar . We can say that by definition the market is then in congestion . We know when the market first enters congestion this creates a dotted line and a block level . This block level is the first block level of the congestion . Thus , the name for this market action is congestion action which begins with a congestion entrance bar and goes on for a time that is indefinite until there are three closes on the PLdots one side , which is the start of another trend.
Let's take a look at how congestion limits are defined with trade stocks online, and how these limits can be expanded.
Congestion action defines the parameters of congestion , which is also known as the confines of congestion . You will remember that the confines of congestion are defined by the dotted line and the block level , and the first block level gets set up by what is known as the congestion entrance bar. There can be an expansion of these levels . If the price ends up going outside the dotted line or block level, while congestion is still in effect ( without three straight closes occurring on the one side of the PLdot), then price is redefining the confines of congestion and there can be established an even larger congestion . This can happen several time before you see a new trend run .
Next time we'll talk more about congestion trading in the trade stocks online series.
