Trading Congestion Zones Breakouts

Before prices approach a congestion zone, there should be enough demand to support a breakout.

  • Demand signals on the last bottom shows there may be enough demand to break through a resistance zone
  • An above average volume on the breakout bar is a good indication of a successful breakout. If the breakout is on low volume, see if the volume picks up on the next bars
  • Wide up bars with high volume (red bars), before reaching a resistance zone, is another good indication of a successful breakout


Good volume on breakout Signals above support Absorption Volume Breakout trade Trade and Reverse in Breakout