How to deal with areas of congestion, with shares trading rooms

In trading rooms is not only important to notice the trend, but when the trend comes into range and what to do then.

At the beginning of their training in technical analysis many traders get acquainted with various graphic patterns that signal a possible increase or decrease. Among the most famous are "cup and handle", flags and much more. However, what happens after the attack is successful? The answer lies in the temperament of each of us and determine the exact time frame. Many investors can wait patiently but for very active traders waiting in range can be very frustrating and unproductive. Breakthroughs in various sectors not occur simultaneously and the most important is not to "tie" somewhere investments in a range, if we can deploy and win more elsewhere. This is very important for investors to determine exactly when the trend will calm. Two methods can help us determine this - one includes Fibonacci and the other is to identify areas of congestion in the price of an asset.

By Fibonacci analysis is a method used to determine the levels of support and resistance in the graph. The idea is that the price followed by the rise or fall can be determined. This method shows how we can determine the purpose of the movement of the market. Prolonged analysis will be surprised how often the price revolves around Fibonacci. The real beauty is that if well painted market turns in a well orchestrated symphony, it's easy to determine the levels at which the market will go.

Another method for identifying the slowing trend is simply to track the price and trading volume to determine the areas where it is "congested", or what we call blow whiplash during a downtrend. The territory of "whiplash" seems more plausible in downtrend, the price indicates greater volatility compared to a similar upward movement. The method is pretty straightforward. Look back at the chart and you will see what is the price movement at high volumes, is clearly visible trend for now.

Again, a precise analysis of the time and the price movement will reach the determined order.

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