How To Recognize Congestion Zone at The Earliest Possible Time
Hongkong
Most of the time (approx 70% ~ 80%) price movement in currency pairs are trapped in the congestion zone. It is critical to recognize this zone at the earlier stage. The main issue is that at the earlier stage while forming the price pattern, it is rather tricky to differ congestion from trend forming.
Market congestion is defined as a temporary occurrence of price stability which is confined to the specific high and low price. It is a resting area, trying to seek for equilibrium between supply and demand in the market. It might last from one week to several months.
Congestion areas have been said to be considerably more exhaustive study than any other aspects of technical analysis. The problem here remains as “how to” quests for the following items:
- To recognize the emerging of congestion zone at the earlier stage
- To judge how long the congestion area is likely to last
- To judge how far the ensuing trend is likely to carry on
- To determine the trend direction of the breakout from congestion zone, possibly a trend continued or a trend reversed. …………….<MORE> Click here
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