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 ?
It did manage to recover to end the week within its congestion area of 7,800 and 8,000," Mangun said.
'Despite the PSEi closing at its lowest level in 2018 this week, it has managed to stay within its congestion area between 6,800 and 7,100.
"With only three trading days next week due to the holidays, the index will continue in this congestion area between 7,500 and 7,830 on low volume.
Those conditions in no particular order of significance are: low daily average trading volume, the blue-chip index stuck in a narrow trading range in a heavy congestion area; and the index holding above a strong support level.
ODOT officials said they recognize that the Beltline/Delta interchange is an ongoing safety and congestion area of concern for many motorists.
The market has entered congestion area, starting 33,600 to 35,000.
The previous node uses a "bypass" route for bypassing the potential congestion area to the first noncongested node on the primary route.
Meanwhile in London's congestion area a fee must be paid up t o 6.30pm Monday to Friday.
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. This could be a real problem."
If we don't start to see a pickup in volume, the Philippine Stock Exchange index may continue in this congestion area indefinitely,' Mangun said.