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This paper demonstrates the capabilities of wavelet transform (WT) for analyzing important features related to bottleneck activations and traffic oscillations in congested traffic in a systematic manner. In particular, the analysis of loop detector data from a freeway shows that the use of wavelet-based energy can effectively identify the location of an active bottleneck, the arrival time of the resulting queue at each upstream sensor location, and the start and end of a transition during the onset of a queue. Vehicle trajectories were also analyzed using WT and our analysis shows that the wavelet-based energies of individual vehicles can effectively detect the origins of deceleration waves and shed light on possible triggers (e.g., lane-changing). The spatiotemporal propagations of oscillations identified by tracing wavelet-based energy peaks from vehicle to vehicle enable analysis of oscillation amplitude, duration and intensity.