We speak here of congestion action trading .  A market in congestion action 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. In an uptrend the first bar that closes on the PLdot’s opposite side is known as the first Block Level, or in a down trend, the high of the first bar to close on the PLdot’s other side .

After you have a working knowledge of the theory, characteristics, and patterns of congestion action trading , it can be quite lucrative . It is much like crop harvesting . Congestion action trading can really earn bread and butter …. and , you can buy the table to hold the bread , and for the table you can buy a house, and the estate to hold the house , and the boat, care, plane, drivers, and so much more. In short , congestion action trading holds a lot of potential for you , if you take time to learn everything you can about it .

What exactly is congestion action trading anyway?

One effect of emini trading with Drummond Geometry is that you get definitions that are very clear. There is a trend run for prices or there isn’t . When after more than three closes are on the PLdots one side and then it closes on the PLdots other side, this is not a trend run . The market is in congestion if it is not in a trend run . It’s all quite simple.

The first bar when there is a close on the trending dot’s opposite side is the congestion entrance bar . We can say that by definition the market is then in congestion . We know when the market first enters congestion this creates a dotted line and a block level . The block level is the congestion’s first block level . So , congestion action is the name for that market action which gets started with the congestion entrance bar and goes on for a time that is not defined until on one side of the PLdot there are three closes, which is the start of another trend.

Let’s have a look at the limits of congestion and how they’re defined with emini trading, and how they can expand .

The congestion action is what defines the congestion’s parameters, also 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 .  But these levels can be expanded . If prices goes outside the dotted line, or outside of the block level , while congestion is still in effect ( without three closes being on the PLdot’s one side ), then price is redefining the confines of congestion 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.