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We speak here of congestion action trading .  Congestion action in a market is one that swings back and forth between the confines of congestion, between support as well as resistance ( or in terms of Drummond Geometry, between the block level and the dotted line). This is action in the market that happens in congestion , and when there is not a trend run. The level that is created by the highest high of the up trend that preceded is the Dotted Line , or the very lowest low that the preceding down trend created. The low of the very first bar that closes on the other side of the Pldot within an uptrend is the first Block Level , or the high of the very first bar on a down trend that closes on the other side of the PLdot.

After you have a working knowledge of the patterns, characteristics, and theory of congestion action trading, you can really make money. It's a lot like harvesting a good crop. Congestion action trading can really earn bread and butter …. and , a table to hold the bread can be bought, and for the table you can buy a house, and then an estate for the house , and the car, the driver, and the boat, and the plane, and all the other toys or essentials you may or may not desire . In short , you have a huge potential to make money with this type of trading, if you take time to learn everything you can about it .

What is congestion action trading ?

One result of technical analysis explained this way through Drummond Geometry is that you get definitions that are very clear. You either have prices in trend runs, or 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 . The market is in congestion if it is not in a trend run . It's very clear and simple .

When the price ends up closing on the other side of the trending dot, the first bar is known as the congestion entrance bar. Then it can be said that the market is in congestion by definition . We know when the market first enters congestion a block level and dotted line are created . This block level is the first block level of the congestion . Thus , 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 on one side of the PLdot there are three closes, which marks the start of a new trend .

Now let's look at the way the limits of congestion are defined with technical analysis explained, as well as how expansion can occur .

The congestion action is what defines the congestion's parameters, which may be called the confines of congestion.  Remember that the confines of congestion are defined by the dotted line and the block level , and the congestion entrance bar is what establishes the first block level .  There can be an expansion of these levels . If the price ends up going outside the dotted line or block level, while still in congestion (that is, without showing three closes on one side of the PL Dot ), then price redefines the congestion confines and there can be established an even larger congestion . Before a new trend run occurs, this can happen various times.

We will continue this discussion about congestion trading in our next article in the technical analysis explained series.

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