Congestion describes part of a stock chart where there are many candles at the same price or at similar prices. This often signifies that a price is interesting or important. When drawing support and resistance or similar lines on a stock chart, people usually make the lines go through congested regions of the graph.
Although finding congestion is a common technique in technical analysis, the algorithm is not well defined. When people do this by hand, the results are often very subjective. We use statistical analysis to objectively automate the process of finding congestion on a stock chart.
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