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:
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 Terms:
Break
Bulge
Buoyant
Buyer's Market
Corner
Futures Contract
Resistance
Support
Technical Analysis |