28. C-zone Entry / Exit


28. C-zone Entry / Exit

The C-zone (Congestion Zone) is when 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? We have learned that 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 repeatedly. It can be very frustrating until you learn what is 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 meaning the exit is on the opposite side of the C-zone.  


Past performance is not necessarily indicative of future results.




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.