Day Trading With Price Action Volume 3 - Galen Woods

2 ND EDITION

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Day Trading with Price Action
Volume III: Price Patterns
Galen Woods
Trading Setups Review
Copyright © 2014-2016. Galen Woods.
PDF eBook Edition
Cover Design by Beverley S.

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Copyright © 2014-2016 by Galen Woods (Singapore Business
Registration No. 53269377M). All rights reserved.
First Edition, 1 September 2014.
Second Edition, 5 April 2016.
Published by Galen Woods (Singapore Business Registration No.
53269377M).
All charts were created with NinjaTrader™. NinjaTrader™ is a
Registered Trademark of NinjaTrader™, LLC. All rights reserved.
No part of this publication may be reproduced or transmitted in
any form or by any means, electronic or mechanical, without
written permission from the publisher, except as permitted by
Singapore Copyright Laws.

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to your own customers or readers, please contact Galen Woods
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Contact Information
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
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Disclaimer
The information provided within the Day Trading with Price
Action Course and any supporting documents, software,
websites, and emails is only for the purposes of information and
education. We don't know you so any information we provide
does not take into account your individual circumstances, and
should NOT be considered advice. Before investing or trading on
the basis of this material, both the author and publisher
encourage you to first seek professional advice with regard to
whether or not it is appropriate to your own particular financial
circumstances, needs and objectives.
The author and publisher believe the information provided is

correct. However we are not liable for any loss, claims, or
damage incurred by any person, due to any errors or omissions,
or as a consequence of the use or reliance on any information
contained within the Day Trading with Price Action Course and
any supporting documents, software, websites, and emails.
Reference to any market, trading time frame, analysis style or
trading technique is for the purpose of information and
education only. They are not to be considered a
recommendation as being appropriate to your circumstances or
needs.
All charting platforms and chart layouts (including time frames,
indicators and parameters) used within this course are being
used to demonstrate and explain a trading concept, for the
purposes of information and education only. These charting
platforms and chart layouts are in no way recommended as
being suitable for your trading purposes.

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Charts, setups and trade examples shown throughout this
product have been chosen in order to provide the best possible
demonstration of concept, for information and education
purposes. They were not necessarily traded live by the author.
U.S. Government Required Disclaimer: Commodity Futures
Trading and Options trading has large potential rewards, but
also large potential risk. You must be aware of the risks and be
willing to accept them in order to invest in the futures and

options markets. Don't trade with money you can't afford to
lose. This is neither a solicitation nor an offer to Buy/Sell futures
or options. No representation is being made that any account
will or is likely to achieve profits or losses similar to those
discussed on this web site. The past performance of any trading
system or methodology is not necessarily indicative of future
results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED
PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE
AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO
NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES
HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDEROR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF
CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.
SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO
SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE
BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE
THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT
OR LOSSES SIMILAR TO THOSE SHOWN.

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Contents
Chapter 1 - Introduction ...................................................... 1
1.1 - The True Purpose of a Trading Setup .......................... 1
1.2 - What to Expect......................................................... 2
1.3 - The Holy Grails ......................................................... 4
1.4 - Overview of Price Patterns .........................................5

1.5 - Ground Rules ........................................................... 7
Chapter 2 - Congestion Break-out Failure ............................... 9
2.1 - The Psychology Behind ..............................................9
2.2 - Identifying the Congestion Break-out Failure .............. 10
2.2.1 - Congestion ....................................................... 10
2.2.2 - Break-out ........................................................ 14
2.2.3 - Failure ............................................................. 15
2.2.4 - Long Congestion Break-out Failure Setup ............. 16
2.2.5 - Short Congestion Break-out Failure Setup ............ 16
2.3 - Trading the Congestion Break-out Failure .................. 17
2.3.1 - 6E 60-Minute Example ....................................... 17
2.3.2 - FDAX 10-Minute Example ................................... 19
2.3.3 - ES 10-Minute Example ....................................... 20
2.3.4 - CL 5-Minute Example ......................................... 22
2.3.5 - ZN 60-Minute Example ...................................... 24
2.4 - Conclusion ............................................................. 25
Chapter 3 - Congestion Zone .............................................. 27
3.1 - The Psychology Behind ............................................ 27
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3.2 - Identifying the Congestion Zone ............................... 31
3.2.1 - Drawing the Congestion Zone ............................. 31
3.2.2 - Merging Congestion Zones ................................. 33
3.2.3 - Long Congestion Zone Setup .............................. 35
3.2.4 - Short Congestion Zone Setup ............................. 37
3.3 - Trading the Congestion Zone ................................... 39
3.3.1 - CL 5-Minute Example ......................................... 39

3.3.2 - ZN 60-Minute Example ...................................... 42
3.3.3 - NQ 3-Minute Example ........................................ 44
3.3.4 - 6A 30-Minute Example ....................................... 45
3.3.5 - 6E 45-Minute Example ....................................... 46
3.4 - Conclusion ............................................................. 48
Chapter 4 - Trend Bar Failure ............................................. 50
4.1 - The Psychology Behind ............................................ 50
4.1.1 - Finding Numerous Counter-Trend Traders ............ 51
4.1.2 - Finding What Makes Them Freak Out ................... 51
4.2 - Identifying the Trend Bar Failure .............................. 52
4.2.1 - Long Trend Bar Failure Setup ............................. 54
4.2.2 - Short Trend Bar Failure Setup ............................ 54
4.3 - Trading the Trend Bar Failure ................................... 55
4.3.1 - 6J 20-Minute Example ....................................... 55
4.3.2 - CL 5-Minute Example ......................................... 57
4.3.3 - ES 10-Minute Example ....................................... 58
4.3.4 - 6A 30-Minute Example ....................................... 59
4.3.5 - 6E 30-Minute Example ....................................... 61
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4.4 - Conclusion ............................................................. 64
Chapter 5 - Deceleration .................................................... 66
5.1 - The Psychology Behind ............................................ 66
5.2 - Identifying the Deceleration ..................................... 68
5.2.1 - Deceleration Pattern .......................................... 68
5.2.2 - Long Deceleration Setup .................................... 69
5.2.3 - Short Deceleration Setup ................................... 72

5.3 - Trading the Deceleration ......................................... 72
5.3.1 - CL 5-Minute Example ......................................... 72
5.3.2 - ES 10-Minute Example ....................................... 74
5.3.3 - 6J 30-Minute Example ....................................... 75
5.3.4 - FDAX 10-Minute Example ................................... 76
5.3.5 - NQ 5-Minute Example ........................................ 78
5.4 - Conclusion ............................................................. 80
Chapter 6 - Anti-Climax ..................................................... 81
6.1 - The Psychology Behind ............................................ 81
6.2 - Identifying the Anti-Climax ...................................... 82
6.2.1 - Anti-Climax Pattern ........................................... 82
6.2.2 - Anti-Climax versus Deceleration.......................... 83
6.2.3 - Long Anti-Climax Setup ..................................... 87
6.2.4 - Short Anti-Climax Setup .................................... 87
6.3 - Trading the Anti-Climax ........................................... 88
6.3.1 - CL 4-minute Example ........................................ 88
6.3.2 - 6A 30-Minute Example ....................................... 90
6.3.3 - ES 10-Minute Example ....................................... 91
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6.3.4 - FDAX 10-Minute Example ................................... 94
6.3.5 - NQ 3-Minute Example ........................................ 95
6.4 - Conclusion ............................................................. 97
Chapter 7 - Pressure Zone ................................................. 99
7.1 - The Psychology Behind ............................................ 99
7.1.1 - Traders Who Sold at the High of the Bar (Stage One)
............................................................................... 100

7.1.2 - Traders Who Bought at the High of the Bar (Stage
One) ........................................................................ 101
7.1.3 - Traders Who Sold at the Low of the Bar (Stage Two)
............................................................................... 102
7.1.4 - Traders Who Bought at the Low of the Bar (Stage
Two) ........................................................................ 102
7.1.5 - Deducing Pressure .......................................... 103
7.2 - Identifying the Pressure Zone ................................ 104
7.2.1 - Pressure Zone ................................................ 105
7.2.2 - Long Pressure Zone Setup................................ 108
7.2.3 - Short Pressure Zone Setup ............................... 109
7.2.4 - Pressure Zone & Congestion Zone ..................... 110
7.3 - Trading the Pressure Zone ..................................... 111
7.3.1 - NQ 3-Minute Example ...................................... 111
7.3.2 - 6A 4-Hour Example ......................................... 112
7.3.3 - ES 10-Minute Example ..................................... 114
7.3.4 - CL 4-Minute Example ....................................... 115
7.3.5 - FDAX 10-Minute Example ................................. 118
7.4 - Conclusion ........................................................... 120
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Chapter 8 – Anxiety Zone................................................. 121
8.1 - The Psychology Behind .......................................... 121
8.2 - Identifying the Anxiety Zone .................................. 125
8.2.1 - Anxiety Zone .................................................. 125
8.2.2 - Long Anxiety Zone Setup ................................. 130
8.2.3 - Short Anxiety Zone Setup ................................ 131

8.2.4 - Important Notes ............................................. 131
8.3 - Trading the Anxiety Zone ...................................... 132
8.3.1 - CL 4-Minute Example ....................................... 132
8.3.2 - NQ 10-Minute Example .................................... 133
8.3.3 - ES 10-Minute Example ..................................... 135
8.3.4 - 6E 60-Minute Example ..................................... 137
8.3.5 - NG 6-Minute Example ...................................... 139
8.4 - Conclusion ........................................................... 141
Chapter 9 - Weak Pullback ............................................... 143
9.1 - The Psychology Behind .......................................... 143
9.2 - Identifying the Weak Pullback ................................ 147
9.2.1 - Weak Pullback ................................................ 147
9.2.2 - Weak Pullback in Bull Trend.............................. 148
9.2.3 - Weak Pullback in Bear Trend ............................ 149
9.2.4 - Trading the Weak Pullback ............................... 151
9.2.5 - Long Weak Pullback Setup ............................... 152
9.2.6 - Short Weak Pullback Setup............................... 154
9.3 - Trading the Weak Pullback ..................................... 155
9.3.1 - ES 10-Minute Example ..................................... 156
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9.3.2 - NQ 3-Minute Example ...................................... 157
9.3.3 - CL 3-Minute Example ....................................... 159
9.3.4 - 6J 30-Minute Example ..................................... 160
9.3.5 - 6A 30-Minute Example ..................................... 161
9.4 - Conclusion ........................................................... 163
Chapter 10 – High Quality Setups ..................................... 165

10.1 - Support and Resistance ....................................... 166
10.1.1 - 50% Retracement ......................................... 167
10.2 - Confluence of Setups........................................... 170
10.3 - Form of Individual Setups .................................... 172
10.3.1 - Outside Bars ................................................. 173
10.4 - Checklist for Assessing Setups .............................. 176
10.5 - Conclusion ......................................................... 176
Chapter 11 – Tracking Market Bias with Trading Setups ....... 178
11.1 - Assessing the Success of a Trading Setup .............. 179
11.1.1 - Long Trading Setup ....................................... 179
11.1.2 - Short Trading Setup ...................................... 181
11.1.3 - Imperfect Setups .......................................... 183
11.2 - Tracking the Market Bias ..................................... 187
11.2.1 - ES 10-Minute Example ................................... 187
11.2.2 - NQ 5-Minute Example .................................... 189
11.2.3 - 6A 10-Minute Example ................................... 190
11.3 - Conclusion ......................................................... 193
Chapter 12 - Re-entries ................................................... 195
12.1 - The Psychology of Re-entries................................ 195
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12.2 - Re-entry Criteria ................................................. 197
12.2.1 - Long Setup Re-entry...................................... 201
12.2.2 - Short Setup Re-entry ..................................... 202
12.2.3 - More Tips for Re-entries ................................. 204
12.3 - Re-entry Equivalent ............................................ 204
12.4 - Conclusion ......................................................... 209

Chapter 13 - The Meaning of Form .................................... 210
13.1 - The Need for Bending Rules ................................. 210
13.2 - Principles for Discretionary Trading ....................... 213
13.3 - Records of Discretionary Trades ............................ 225
13.4 - The Real Meaning of Form.................................... 226
13.5 - Conclusion ......................................................... 227

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Chapter 1 - Introduction
1.1 - The True Purpose of a Trading Setup
A trading setup is a set of specific conditions that must be met
before we enter the market. It determines when we enter the
market. For many traders, their understanding of trading setups
stops here. They miss the most important role of a trading
setup.
Conditions that dictate where we enter, also determine where
we exit. The trading setup that signals the entry also offers a
natural stop-loss point. If we enter the market randomly, we
can only exit it randomly as well. If we enter the market with a
bullish price pattern, we can exit the market when price action
negates the pattern.
Our trading setup determines our entry price. It also determines
our exit price if the market goes against us. The difference
between these two price levels is our trade risk, which is the
maximum amount we stand to lose, ignoring slippage and
commissions. Hence, a trading setup limits and highlights our

trade risk.
It follows that a reliable trading setup is not one that offers a
good entry. It is one that offers a good exit when the market
moves against you (i.e. a stop-loss). A reliable trading setup
highlights a price point which is likely to hold up along the
direction of the market bias. The higher the quality of the setup,
the more reliable is the associated stop-loss level.
The true purpose of a trading setup is to offer a stop-loss level
to help us limit our risk. It is not a money-making signal. It is a
risk control tool.

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Chapter 1 - Introduction

Having a reliable stop-loss level is a key piece in our quest
towards positive expectancy, a concept so critical that we will
spend the entire Volume IV discussing it. For this volume, we
will focus on learning how to identify high quality trading setups.

1.2 - What to Expect
As explained in Volume I, price action works because of the
human psychology that responds to price changes. Psychology
explains how past and current prices affect future prices.
Thus, for each price pattern, we will start by explaining the
psychology behind it. We seek to understand the perspective of
the losing traders in the market. We must understand the losing

traders well, because they are our paymasters. If you can find
traders who are poised to lose, you can be the one that takes
their money from them.
As you will learn, the psychology underlying each price pattern
is essential for evaluating the quality of trading opportunities. In
fact, the underlying concept of each price pattern is more
important than their visual forms.
The psychological explanations I provide might not be correct,
and they are certainly not the only explanation underlying each
price pattern. And even if they are correct, they are not always
so. However, these explanations make enough sense for me to
trust these patterns and trade them effectively.
You will also learn to recognise these price action patterns
without a doubt. A price pattern encapsulates specific market
behaviour but it is not always a trading setup. There are
additional criteria before it becomes a trading setup.

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Chapter 1 - Introduction

For instance, in Chapter 5, you will learn to spot the bearish
Deceleration pattern. However, for a Deceleration setup, we will
need a bearish bar to function as the setup bar before the
market crosses above the pattern’s limit line.
(If you need help identifying the price patterns on your charts,
the Indicator Pack that is available separately will be useful. It

contains indicators that mark out the price patterns for you. The
purpose of these indicators is to facilitate your learning. They
are purely optional. You can definitely employ the trading
method explained here without them.)
Thus, other than having clear rules to identify price patterns,
there are also objective rules trading them. You will be able to
recognise the trading setups in any market. Identifying price
patterns and their respective trading setups is an objective
process, but assessing their quality is subjective. The best way
to teach something subjective is through examples, which you
will find plenty in this volume.
I have included examples from a variety of futures markets and
time frames to demonstrate the versatility of the patterns. You
will notice uncommon time frames like 45-minute and 4-minute.
I am not using these time frames because they are giving me
any trading advantage. As explained in Volume II, any day
trading time frame that is above the Minimum Trading Time
Frame (MTTF) is amenable to price action analysis. Personally, I
prefer trading at or slightly above the MTTF as they offer more
trading opportunities. Thus, if you see uncommon time frames
in our examples, it is because that is the MTTF for that market
at that point in time.
A price action setup in itself is not a trading opportunity. We
need to filter them according to our market bias and evaluate
them against our exit strategy. We have learned how to figure
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Chapter 1 - Introduction

out the market bias in the previous volume. In this volume, we
will reinforce that skill as we try to identify the market bias
before discussing each setup. We will mention reward-to-risk
considerations briefly in this volume as we discuss the setups.
However, the evaluation of each setup against our exit strategy
(including our reward-to-risk ratio) is fully discussed in the next
volume covering “Positive Expectancy”.
The final few chapters of this volume deal with the
characteristics of the best setups, and advanced trading
techniques including re-entries and tracking the market bias
using price patterns.

1.3 - The Holy Grails
Trading gurus have a habit of giving new names to old trading
concepts, and publishing them as unique works. That irritates
me. There is nothing wrong with naming them. We need
nomenclature to facilitate communication. I have named the
setups in this volume too. (In fact, call them whatever you
want, as long as you find them useful in your trading.)
Most price action setups are named according to how they look
like (for e.g. Inside Bar, Hammer) or some poetic phrase (for
e.g. Three Black Crows, Evening Star). However, for the setups
in this volume, as much as possible, I have named them
according to the underlying concepts. I believe that these
names are useful in reminding us that as price action traders,
we are trading market concepts, and not merely visual or
mystical patterns.
Naming setups is acceptable. The problem appears when traders

claim them as unique discoveries or first-of-a-kind.

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Chapter 1 - Introduction

The market repeats itself. The same human psychology and
market behaviour have always been around. Many smart minds
have devoted themselves to studying market behaviour. The
inevitable conclusion is that most trading methods have already
been expounded on, in some way or another. We are standing
on the shoulders of giants, and I am deeply grateful to them.
The price patterns in this volume are based on timeless trading
ideas which I have interpreted according to how I look at the
market. My intention is to explain them in a useful way for day
traders of all levels.
I must emphasize that these price patterns are not the Holy
Grail. More importantly, I did not discover them. I am not the
only trader that has mastered them. I am not claiming these
price patterns as my exclusive discoveries.
On the other hand, I have included references to similar or
relevant concepts by other traders. I encourage you to crossreference our works to learn more effectively. I do not believe in
worshipping any trader, regardless of how successful they are.
Doing that closes us to new ideas from other traders. Instead of
rejecting unfamiliar ideas, we should learn openly from different
traders. You will find success somewhere within these
differences, instead of within one particular trading guru.

A word of caution: If anyone tells you that they have found a
brand new market secret that will make you tons of money, turn
and run.

1.4 - Overview of Price Patterns
This volume explains eight price action setups and how to trade
them.

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Chapter 1 - Introduction

The Congestion Break-out Failure introduces the concept of
market congestion. It takes advantage of the fact that most
break-outs from congestions fail.
The Congestion Zone uses the same sideways price action to
project support and resistance areas which we will use to spot
trading opportunities.
The Trend Bar Failure is the simplest price action pattern. It
finds counter-trend traders in their worst positions.
The Deceleration finds price thrusts with hidden weakness. As
that weakness becomes more apparent, we fade the thrust.
The Anti-climax is an unsustainable climatic move. When it
goes against the market bias, we have a trading opportunity.
The Pressure Zone is the repeated buying or selling
concentrated within a price range. After spotting a Pressure
Zone, we join in the fun.

The Anxiety Zone is the ultimate failure pattern. We spot
attractive counter-trend setups, and go with the assumption
that they will fail.
The Weak Pullback finds pullbacks against the market bias,
which shows no signs of strength. Its premise is that a reversal
requires a show of counter-trend strength. When there’s none,
what we have is a retracement and not a reversal.
Price action is seldom precise. Support and resistance are often
not a price level, but a range of prices. This is why three out of
the eight price patterns above are based on price zones. These
zone patterns define price ranges that we should pay closer
attention to for the purpose of finding trading opportunities.
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Chapter 1 - Introduction

Although each chapter focuses on one trading setup, in the
trading examples, I frequently refer to different patterns, as
they all help to confirm each other and complete our market
perspective. Indeed, the best trading setups often consist of
more than one price pattern.

1.5 - Ground Rules
All trend lines in the trading examples are drawn according to
the techniques explained in Volume II.
For all long setups:





Take them only when the market bias is bullish.
Place your buy stop order one tick above the high of the
setup bar.
Place your stop-loss order one tick below the low of the
setup bar.

For all short setups:




Take them only when the market bias is bearish.
Place your sell stop order one tick below the low of the
setup bar.
Place your stop-loss order one tick above the high of the
setup bar.

Hence, according to the order entry rules above, our trade risk
is always represented by the range of the setup bar plus two
ticks. (The dollar amount depends on the number of contracts
you are trading.)
Figure 1-1 below illustrates how the range of the setup bar
represents our trade risk for a long setup. The same goes for
short setups.

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Chapter 1 - Introduction

Buy stop order

Setup bar

Trade risk

Stop-loss order
Figure 1-1 Trade risk

With these ground rules in mind, let’s begin.

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Chapter 2 - Congestion Break-out
Failure
2.1 - The Psychology Behind
Generally, traders need the market to move in order to make
money.1 Hence, when the market is not moving much (i.e.
congesting), traders get impatient. Impatience is followed by
hallucination.
They start to see trading opportunities when there are none.
They buy and sell the tiniest move out of the congestion. Most

of these trades result in small losses which irritates the
impatient and hallucinating traders further.
Eventually, price breaks out with a clear move. In this case, let’s
say price has broken out upwards. You can be sure that these
traders are not going to let the market take off without them. All
of them are going to jump right into that break-out.
Uh-oh. The break-out is failing and price is falling.
Remember, these are traders who have already been tricked
many times before. They have been hopping on and off different
positions. They are jittery. They are not going to hesitate to exit
at the slightest sign of a break-out failure.
Their exit will push the market down. Their exit from their long
positions is our short entry.
This is the psychology behind the Congestion Break-out Failure
within the context of a bearish market.

1

Except in a short volatility options position

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Chapter 2 - Congestion Break-out Failure

2.2 - Identifying the Congestion Break-out
Failure
There are three components to this setup.

1. Congestion
2. Break-out
3. Failure

2.2.1 - Congestion
The basic formation is congestion, so let’s learn how to identify
congestion.
Congestion is also called a trading range, because price is
trapped within a range. Basically, it is moving sideways and is
not making headway in either direction. With this
understanding, what should a congestion pattern look like?
The basic price range on any chart is the bar range. Each price
bar has a price range defined by its high and low. If the market
is congested, then the next bar is more likely to stay within the
range of the preceding bar than moving out of it. The prime
example is an inside bar as shown in Figure 2-1.

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Chapter 2 - Congestion Break-out Failure

Completely within
the range of the
preceding bar

Bar range

Inside Bar

Figure 2-1 Inside bar within the range of the previous bar

However, we know that the market is deceptive. False breakouts are common in a congested market, just like how false
reversals are common in a trending market.
Thus, we will allow for intra-bar break-outs of the range. Even if
a bar moves above the high or below the low of the preceding
bar, it does not rule out the possibility of congestion. What we
will depend on is the conclusive outcome of the bar, which is its
closing price. As long as the bar closes within the range of the
previous bar (like in Figure 2-2), we consider the possibility that
the market is congesting.

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Chapter 2 - Congestion Break-out Failure

Closed within the range
of the preceding bar;
possible congestion

Bar range

Broke out of the range
of the preceding bar
Figure 2-2 Intra-bar break-out

But there is a problem. Figure 2-2 does not look like a
congestion pattern. In fact, it is a bullish reversal pattern. This
is why I said that there is a “possibility” that the market is
congesting. It is possible, but we are unable to confirm it, not
until we see repeated instances of bar combinations similar to
what is shown in Figure 2-2.
Hence, our definition of a congestion pattern goes like this.
When at least three consecutive bars close within the
range of their respective preceding bar, we have a
congestion pattern.
Figure 2-3 illustrates a congestion pattern.

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Chapter 2 - Congestion Break-out Failure

1. Congestion
started here

2. Congestion
confirmed here

3. Broke out of the
range of the
preceding bar and
ended the congestion

Figure 2-3 A lengthy congestion pattern

1. This was the first bar that closed within the range of the
previous bar (i.e. the bar right before it). Looking at the chart
now, we know that the congestion started with this bar.
However, at that point in time, we would have jumped the gun
by claiming that the market was congesting. We needed
confirmation.
2. The confirmation came two bars later. That was when we got
three bars in a row that closed within the range of their
respective preceding bars. With the closure of this bar, we could
label a congestion pattern.
3. In this case, the congestion dragged on. For a series of 13
bars, not a single bar closed beyond the range of the bar
preceding it. Finally, a bearish bar closed below the low of the
preceding bar. This bar is the break-out bar which ended the
congestion with a downside break-out.

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