Congestion


Congestion describes part of a stock chart where there are many candles at the same price or at similar prices.  This often signifies that a price is interesting or important.  When drawing support and resistance or similar lines on a stock chart, people usually make the lines go through congested regions of the graph.

Although finding congestion is a common technique in technical analysis, the algorithm is not well defined.  When people do this by hand, the results are often very subjective.  We use statistical analysis to objectively automate the process of finding congestion on a stock chart.

Alert Types

We offer the following alert types which are related to this topic.  Click on the icon for a detailed description of the alert, or click on the "more" link for additional examples of each type of alert.

Type Recent Examples More Examples
Time (NY) Symbol Message
Crossed above resistance (confirmed)Nov 20th, 7:52:28 PMINOCrossed above resistance, 1.59, confirmed by volume. Time: 8 hours 12 minutes. Volume: 3,067,820.more
Crossed below support (confirmed)Nov 20th, 4:33:34 PMCAE.CATCrossed below support, 8.43, confirmed by volume. Time: 5 hours. Volume: 782,256.more

See Also

Algorithm, Candlestick, Statistical Analysis, Support and Resistance, Technical Analysis