About the Author

Stephen Oakes is an experienced financial titan from New York who brings Wall Street to Main Street. Over the past 11 years, he has developed and tested the renown, Oakes Momentum System, which uses a unique constellation of technical indicators to find timely buy and sell points. He holds an M.B.A. in the United States (New York) and has studied internationally at the Reims School of Management in France.

See All Posts by This Author

Congested and Continuation Patterns

July 22nd, 2006 • Related • Filed Under

Congested and consolidation patterns are easy to spot. When a stock trades and moves in an irregular pattern, it is said that the stock is congested. We do not want to a stock when it is behaving in such a manner. The second that investors trade a stock with uncertainty, the market shows us her sense of humor as foolish investors are taken to the cleaners.

On the other hand, when a stock seems to trade in a sideways and orderly fashion, it is said that the stock is consolidating. The longer a stock trades in this pattern, the more powerful the breakout in which ever direction it goes. In this chart you will be able to see an example of when a stock trades in either pattern.

Comments are closed.