28. C-zone Entry / Exit


 

A C-zone (Congestion Zone) is where prices trade sideways with no advanced breakout moves. 

The setup is to fade the high/low of the range of the zone(s). 

When do C-zones typically occur? 

What we have learned is markets make moves, then they congest for 3 to 10 plus bars, then they make another move up or down. 

The killer is you want them to continue or fade and they start to and then fade the break out and get stopped out over and over. It can be very frustrating until you learn what is really happening? It is called a C-Zone. They happen way too often to not include this model. 


How to trade a C-zone? 

Once you recognize the market is in a C-zone, just go fishing for buys below the range and sells above the range. I would not expect too much out of these moves but they do offer trade opportunities. 


Past performance is not necessarily indicative of future results.





Next -> Fade Models 

29. Double Tops / Double Bottom



Futures, Options on Futures and Forex trading involves a substantial degree of risk of loss and is not suitable for all individuals. An investor could lose the entire investment or, in some cases, more than the initial investment. Past performance is not necessarily indicative of future results.