Congestion Action vs Congestion Exit – Mastering the TransitionWhen markets go quiet and churn sideways, it’s easy to get lost in the noise. But inside that congestion lies opportunity — if you understand the difference between "Congestion Action" and "Congestion Exit." Here’s how to apply Drummond Geometry to trade these phases with precision:
🔹 Congestion Action
Congestion action is when the market is not ready to trend — it's swinging back and forth within a defined range, between a strong block level and a well-established dotted line. Think of it as a "resting zone" before the next directional move.
📏 Original Confines: Highest high and lowest low after a congestion entrance as shown on the chart
🚧 Expanded Confines: Price temporarily breaks out of the range but doesn’t establish a trend (3 closes on the came side of the PLdot (blue line)).
🧲 This is where scalpers and range traders thrive. Look for setups near envelope confines and use nearby energy fields.
✅ Trade Plan: Play the range — buy support, sell resistance — until proven otherwise.
🔸 Congestion Exit
This is when the market transitions from ranging to trending — a trend run begins from within the congestion zone.
🚀 First bar of a new trend closes outside the congestion confines (either the block level (highest high on the chart) or the dotted line (the low on the chart)).
📊 The next bar must confirm with a trend run close — if not, it’s a failed breakout. You can see on the chart that price tried to trend lower but the trend was not confirmed!
⚡ Patterns to watch:
Energy pushing in the direction of the exit (PL Dot push, c-wave continuation).
6-1 lines against the breakout direction disappear.(Not visible in this version)
Resistance/support against the exit breaks.
✅ Trade Plan: Enter on breakout confirmation, not just the breakout bar. Measure energy and watch the follow-through.
🧭 Tip:
Don't get faked out. If price re-enters congestion after a breakout, re-draw the boundaries — the old congestion is no longer valid.
🔥 Bottom Line:
Congestion Action is where the market breathes. Congestion Exit is where it moves. Mastering the handoff between the two gives you a decisive edge.
