« Learn How To Provide A Loan For Some Home Business | Home | What Does It Bring To Produce It In Store Exchanging? »
Learning About Trading Congestion Action With Emini Trading Part 1
By John | July 8, 2010
Today we’re going to talk about congestion action trading . A market that is in congestion action is one that swings back and forth between the confines of congestion, between support as well as resistance ( or between the block level and dotted line in the terms of Drummond Geometry ). It is market action that occurs within congestion itself , 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 first bar that closes on the other side of the PL Dot in a down trend .
Once you have a sufficient understanding 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 be real bread-and-butter trading ….and what’s more , you can buy the table to hold the bread , and a house for the table , and then an estate for the house , and a car, driver, plane, boat, and anything else you want . Basically , you have a huge potential to make money with this type of trading, if you take congestion action trading and learn all you can.
What exactly is congestion action trading anyway?
One effect of emini trading in this way with Drummond Geometry is that you have clear definitions . 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 all quite 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, but definition, there is congestion in the market. When congestion is first entered we know that a block level and dotted line are created . This particular block level if the very first block level of this congestion. So , 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 there are three closes on the PLdots one side , which marks the start of a new trend .
Now let’s look at the way the limits of congestion are defined with emini trading, and how these limits can be expanded.
Congestion action defines the parameters of congestion , which is also known as the confines of congestion . Remember the block level and the dotted line are what define the confines of congestion , 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 there is still congestion in the market (that is, without showing three closes on one side of the PL Dot ), then price redefines the congestion confines and a larger congestion can occur. This can continue several times until a new trend run appears .
This discussion of congestion trading will be continued in the technical analysis explained series.
Topics: Investing |
Comments are closed.
