congestion area

Congestion Area

In technical analysis, a series of very similar prices at which a security trades for an extended period of time. For example, if a stock trades between $12.50 and $13.25 for several trading days, this price range is said to be that stock's congestion area. A congestion area indicates that supply and demand for a security are relatively equal; as a result, most technical analysts do not recommend buying or selling such a security until it breaks the congestion area in one direction or another.

congestion area

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congestion area
In technical analysis, a horizontal band on a point-and-figure chart resulting from a stock price fluctuation within a narrow price range. Because a congestion area indicates an equality of supply and demand, technicians wait until the stock breaks through the upper or lower bound before committing funds. See also horizontal count.
References in periodicals archive ?
Located in a low traffic congestion area, this office center has frontage and immediate entrance to the (241) Foothill Transportation Corridor as well as convenient access to the Laguna (133) Freeway and the Riverside (91) Freeway.
Although progress is being made in expanding California's energy infrastructure, Southern California's economic and strategic significance to the nation is so large that the department finds it to be a critical congestion area,'' wrote authors of the National Electric Transmission Congestion Study.
Meanwhile in London's congestion area a fee must be paid up t o 6.
The proposed new congestion area would be bounded by Harrow Road, Scrubs Lane, West Cross Route, Earls Court one-way system and Chelsea Embankment.
People living on or near roads bordering the congestion area were particularly vociferous.
It is the owner of the original vehicle who will have to foot the bill and he may have difficulty explaining his car was not in the congestion area.
A push above there exposes a congestion area that begins at 1.
The Manchester plans would have created the country's biggest congestion area - around 80 square miles inside the M60 - charging drivers up to pounds 5 a day.
The proposed new congestion area would be an area broadly bounded by Harrow Road, Scrubs Lane, West Cross Route, Earls Court One Way System and Chelsea Embankment.
30pm when the congestion area is extended into West London in early 2007.
2609 congestion area, with a break opening the door to a selloff targeting 1.
Prices have now entered a congestion area from mid-August between the 50% Fib at 1.