THE HAnDbook of TECHnICAl AnAlysIs(formed around 9 August 2011), and an uptrending internal line on the Daily
Silver Chart. Notice also a couple more price confluences concentrated around the
$40.80 and $49.95 price levels.
Figure 27.11 is a daily chart of the EURUSD. It depicts price approaching a
resistive price cluster at Point 1, comprising a resistive channel top and a prior
resistive price level (that is, support turned resistance) which formed around the
26th of March. Note that Point 1 also coincided with an overbought signal on
the stochastics with above average volume. Notice that price declined after test-
ing the resistive confluence at Point 1. Point 2 depicts another resistive confluence
comprising a channel top and a prior resistance (Point 1). Point 2 also coincided
fIgure 27.8 Price Clustering on the Daily USDCHF Chart.
Source: MetaTrader 4
fIgure 27.9 Intermarket Price Confluence.
Source: MetaTrader 4