What is a Choppy Market or Congestion Area?

4 min readFeb 12, 2019

Generally, we as traders want the market to be volatile and make directional moves to book some profitable trades. (Of course, there are strategies you can use to profit from range bound markets; such as Credit spreads etc.). Let us keep those out for now.

Congested market is whenever the price action is range bound, and is moving sideways. If you take a price candle and look at its high-low — that defines the range of the price within that particular time frame. Therefore by definition, in a choppy or congested market, the next price candle will also…


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