Congestion Areas
Chapters in this video
- 0:00 Defining congestion area, consolidation, trading range
- 1:06 Support and resistance as floor and ceiling
- 2:33 Accumulation vs distribution side by side
- 3:30 Why the range alone hides the truth
- 4:00 Breakout revelation and the coiled spring formula
- 5:05 Two-part exam trap: no trend and no guessing direction
- 5:58 Rapid-fire exam recap
What this video covers
- Why a congestion area, consolidation, and trading range are three names for the exact same sideways, range-bound pattern with no trend
- How buying pressure and selling pressure balance inside the range to trap price between support (floor) and resistance (ceiling)
- Why the congestion area itself reveals nothing about whether accumulation or distribution is occurring beneath the surface
- What a breakout is and why only the breakout direction reveals who won the hidden tug-of-war
- Why longer plus tighter equals a bigger breakout, using the coiled-spring analogy
- How exam traps bait you into calling a congestion area trending, or guessing accumulation vs distribution before the breakout confirms it
- Why accumulation is confirmed only on a breakout above resistance, and distribution only on a breakdown below support
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 3 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.