Trading Near Congestion Zones
Trading near a congestion zone is similar to a support/resistance zone. The logic is the same – there is a zone with an high potential to reverse the market, and so, if the market gives these strength signs, you should get ready to get in.
Support holding signs with VSA:
- Demand signals near/just below the support zone
- Low volumes (yellow bars) and narrow range bars approaching a zone
- Thrust bars inside the support zone
- There are no potential zone breakout signs! (explained in the next page)
- Slight uptrend
Stop-loss: Set the stop-loss at the red dot.
Take-profit: Set the take-profit at the green dot.
Move stop-loss: When price reaches the blue dot (the indicator will automatically alert you), close half the trade