Nofri Congestion Phases
Eugene Nofri was a floor trader in the corn pit for many years. In 1976, he wrote Success in Commodities: The Congestion Phase System. Mr. Nofri identified 32 congestion phases. All of them were varieties of a form similar to Figure below. When two bars in succession go down (or up) and the next two bars in succession go up (or down) and the fourth bar is within the range of the combined range of the first two bars -- the fifth bar will be back in the direction of the first two bars.
[caption id="attachment_13286" align="alignleft" width="370"] Nofri Congestion Phase Paradigm[/caption]
This is another of those systems developed for commodities that could use more study for currency trading.
Tip: In 2004, I did a statistical study of Nofri congestion phases for 24 months of three FOREX pairs.