Congestion Entrance marks the transition from a trend to a period of uncertainty and range-bound price action.
📘 Key Concepts:
Congestion begins when price fails to close on one side of the PL Dot for 3 bars.
The first bar that closes on the opposite side of the PL Dot (after a trend) is the Congestion Entrance bar.
This signals a likely end of the previous trend and the beginning of congestion or reversal.
🧩 Key Structures:
Dotted Line: Highest high (or lowest low) of the previous trend — often acts as a cap or floor.
Block Level: Low (or high) of the Congestion Entrance bar — often attracts price and marks congestion boundaries.
Parameters of Congestion: The range defined by the Dotted Line and Block Level.
⚙️ How It Evolves:
There are multiple transition scenarios, for example:
Trend Up → Action → Trend Down: Resistance holds at the Dotted Line, Block Level breaks.
Trend Down → Action → Trend Up: Support holds at the Block Level, Dotted Line breaks.
Trend Up/Down → Reversal: Direct shift into opposite trend if support/resistance is firm enough — skipping action phase.
🔍 Key Takeaways:
Congestion Entrance is often the first clue the market is shifting gears.
It's essential to monitor how price reacts to the PL Dot, Dotted Line, and Block Level.
Anticipate Ping trades (quick scalps) or prep for potential Congestion Action if price fails to establish a trend after entrance.
📌 Pro Tip: Watch how higher timeframes align — if the HTP is showing signs of topping or bottoming, the LTP congestion entrance may lead into a reversal or major trend change.
📘 Key Concepts:
Congestion begins when price fails to close on one side of the PL Dot for 3 bars.
The first bar that closes on the opposite side of the PL Dot (after a trend) is the Congestion Entrance bar.
This signals a likely end of the previous trend and the beginning of congestion or reversal.
🧩 Key Structures:
Dotted Line: Highest high (or lowest low) of the previous trend — often acts as a cap or floor.
Block Level: Low (or high) of the Congestion Entrance bar — often attracts price and marks congestion boundaries.
Parameters of Congestion: The range defined by the Dotted Line and Block Level.
⚙️ How It Evolves:
There are multiple transition scenarios, for example:
Trend Up → Action → Trend Down: Resistance holds at the Dotted Line, Block Level breaks.
Trend Down → Action → Trend Up: Support holds at the Block Level, Dotted Line breaks.
Trend Up/Down → Reversal: Direct shift into opposite trend if support/resistance is firm enough — skipping action phase.
🔍 Key Takeaways:
Congestion Entrance is often the first clue the market is shifting gears.
It's essential to monitor how price reacts to the PL Dot, Dotted Line, and Block Level.
Anticipate Ping trades (quick scalps) or prep for potential Congestion Action if price fails to establish a trend after entrance.
📌 Pro Tip: Watch how higher timeframes align — if the HTP is showing signs of topping or bottoming, the LTP congestion entrance may lead into a reversal or major trend change.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.