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Let's continue our discussion of congestion action trading in our series of articles on emini trading.

Congestion can't be exited until a new trend run happens. With no new trend run, congestion occurs in the market. When a trend run occurs this is a congestion exit as established by the previous action of congestion .

Let's take a different approach with an emphasis that is a bit different.

There are two things that we can say congestion action does .

First, strong original confines are created.

In the second place, strong expanded confines are created .

It's the congestion entrance bar by which the original confines are created, which happens to be the first bar of congestion action, and the very next bar known as the second bar of action, and the third bar if a trend run doesn't occur. The lowest low and the highest high of the bars is what determines the confines, as block level and dotted line define them . These are the congestion original confines .

Here is should be brought to your attention that the third bar of congestion, price , can do a couple things . Price either:

1) Enters into a trend run, and thus into congestion exit, and trend reversal , since congestion action is not confirmed by the third bar closing on the other side of the PL Dot . The confines of congestion are then determined by the original confines of congestion, . OR…

2) Closes on the other side of the PL Dot , and thus continues congestion action . In this case the confines of congestion are determined by the original congestion , as is set out by the lowest low and highest high of the very first three bars.

So, what about expanded confines?

Well, congestion action can create expanded confines by moving so it is outside of the original confines, as long as a trend run hasn't occurring during this time. When price leaves the latest confines, the confines of congestion are then redefined. After this point , then instead of dealing with the original confines in congestion exit, the redefined confines is dealt with.

( You should definite note, that the original confines can have an effect on price , because any level or line is able to do so, but generally speaking , repetitive congestion action can build up the true confines , without a trend run appearing .)

The confines can be expanded as long as no trend run occurs . Only when price moves into a trend run and exits congestion can we say for certain that the final boundaries of congestion have been defined .

So for Drummond Geometry , emini trading clearly and consistently defines congestion , and gives us a framework that we can work with in identifying the confines of congestion under any circumstance .

In future articles in this technical analysis explained series we'll take a look at entries and exits in a congestion . We will find it useful that we have established the clear definitions about congestion .

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