congestion
congestion definition - finance
An
area on a pricing chart that indicates where previous heavy trading volume
occurred or an area in which closing prices on successive trading days tended
to cluster. Congestion often looks like a rectangle on a price chart, as prices
have remained in a narrow range. Usually, when prices break out of the range
they resume the price direction that prices had before entering the area of
congestion.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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