Congestion

Dictionary Says

Definition of 'Congestion'

1. A market situation whereby the demand of contract holders wishing to exit their existing positions exceeds the supply of willing participants wishing to enter into the offsetting position.

2. A period of time when a stock trades either below resistance or above support, or both.
Investopedia Says

Investopedia explains 'Congestion'

1. During times of congestion, contract holders, since their positions are unattractive to new investors and in order to offset their positions, will be required either to pay a high premium or sell at a low discount.

Related Definitions

Search results for

'Congestion'

  • The Market Participant Playbook

    http://www.investopedia.com/articles/trading/08/institutional-effect.asp
    ... price range. This back-and-forth price action appears as a horizontal trading
    range, or “congestion area”, on a stock chart. The ...
  • Testing Point-And-Figure Patterns

    http://www.investopedia.com/articles/trading/07/point-figure.asp
    ... If it is a false breakout, the stock will quickly return to the congestion zone,
    below the new high indicated by the double top or above the new low indicated ...
  • Interpreting Volume For The Futures Market

    http://www.investopedia.com/articles/trading/03/102203.asp
    ... A falling volume and a rising open interest point to a period of slow accumulation.
    A falling volume and a falling open interest depict a congestion phase. ...
  • Riding The Rail Stocks

    http://stocks.investopedia.com/stock-analysis/2011/Riding-The-Rail-Stocks-KSU-UNP-CSX-NSC0908.aspx
    ... A single inter modal train has the equivalent capacity of 280 trucks; rails are
    better for the environment and help alleviate highway congestion. ...
  • Condo Complications: The Issues Behind Ownership

    http://www.investopedia.com/articles/mortgages-real-estate/09/issues-purchasing-condo.asp
    ... including grocery stores or other businesses. With that convenience may
    come more noise and congestion. If you are thinking about ...
  • November 25, 2011 Market Summary

    http://stocks.investopedia.com/stock-analysis/cotd/DIA20111125.aspx
    ... SPY is now quite oversold and is pressing into the prior congestion zone formed
    during August as SPY attempted to stabilize after the mid-summer freefall. ...
  • February 17, 2012 Market Summary

    http://stocks.investopedia.com/stock-analysis/cotd/SPY20120217.aspx
    ... As for the upside, DIA has cleared short-term resistance but, like SPY, is heading
    into a longer-term congestion area that could act as resistance. ...
  • 7 Tips For Shopping Online Safely This Holiday Season ...

    http://financialedge.investopedia.com/financial-edge/1110/7-Tips-For-Shopping-Online-Safely-This-Holiday-Season.aspx
    ... The days of suffering through retail congestion are becoming a thing of the past,
    however: Forrester Research predicts US online sales will increase 16% this ...
  • Infrastructure In India

    http://stocks.investopedia.com/stock-analysis/2012/Infrastructure-In-India-INXX-CHXX-SLX-EMMT-PXR0131.aspx
    ... Analysts calculate that a well-planned infrastructure program could help India cut
    its transportation congestion/waste by half, and fuel requirements by 15% to ...
  • It's Time To Invest In Railroad Stocks

    http://stocks.investopedia.com/stock-analysis/2011/Its-Time-To-Invest-In-Railroad-Stocks-KSU-UNP-CSX-NSC0928.aspx
    ... A single inter modal train has the equivalent capacity of 280 trucks; rails are
    better for the environment and help alleviate highway congestion. ...

Related Articles

Trading Center
Partner Links