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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