What is a Choppy Market or Congestion Area?
4 min readFeb 12, 2019
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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…