Congestion

What is Congestion?

Congestion meaning (1) A market situation in which shorts attempting to cover their positions are unable to find an adequate supply of contracts provided by longs willing to liquidate or by new sellers willing to enter the market, except at sharply higher prices (seeSqueeze, Corner ); (2) in technical analysis, a period of time characterized by repetitious and limited price fluctuations.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary