In technical analysis, price congestion is a phase during which an asset's price moves sideways within a relatively narrow trading range, with limited price fluctuations and generally reduced volatility.
This period of consolidation reflects a temporary balance between buyers and sellers. Prices fluctuate between an upper boundary acting as resistance and a lower boundary acting as support.
Price congestion may end with a breakout beyond either boundary: an upward breakout when the price moves above resistance, or a downward breakout when it falls below support. Traders closely monitor these breakouts because they may signal the beginning of a new directional move, although further price movement in that direction is never guaranteed.
The Price Congestion Screener automatically scans the markets to identify instruments trading within a congestion zone or breaking out above or below its boundaries.
It allows you to quickly spot these setups across numerous instruments without having to examine each chart individually.
A Congestion Indicator is included with the Screener. It displays the detected congestion zones directly on your charts, making them easier to analyse.
Results are sorted into three categories: within congestion, bullish breakout and bearish breakout.
General filtering on the daily timeframe, based on price and trading volume, allows you to select the desired liquidity level.
Many parameters allow you to adapt the search to your own criteria. All settings can be adjusted directly from ProRealTime's “Variables” menu, without modifying the code.
Adjustable validation criteria:
Available filters:
General filtering:
Video presentation:
Details of available settings:
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Disclaimer
Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations. The automated trading systems offered have been developed and optimised using historical data; however, past performance is no guarantee of future results. Investing in the financial markets involves risks up to and including the total loss of capital. The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.
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