Congestion Phase System

Hi emilybarker - What a coincidence. I found the Fred Gehm 1991 article on this system a few weeks ago and was re-reading it yesterday over lunch. I swing trade, mostly the FTSE100 index, and am interested in applying this using EOD closing prices on the index.

But I don't find the definition of congestion phase particularly helpful and wonder if you have identified more objective criteria for this - the phase seems to be confirmed when a high is not broken by a subsequent high OR a low is not broken by a subsequent low. Why OR? surely if a high is unbroken but a low is broken, that's a downtrend, not congestion? Shouldn't this should read AND? In any case, what's a high?
 
Thanks for the messages, my thinking is becoming clearer on this now. This is not the style of trading I usually use but I will post here if I try this system in practice and look forward to hearing if you do so too.
 
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