Integrated Technical Analysis
Figure 27.28 depicts a time line cluster resulting from apex reaction projec-
tions, which tend to have a significant effect on price.price‐time Confluences
Price‐time confluences comprise:■ (^) Price‐static single overlays and clusters
■ (^) Price‐dynamic single overlays and clusters
■ (^) Time clusters
This represents the most potent form of technical analysis. It combines the high-
est probability reaction price levels and time lines. Such confluences are significant
as they represent areas on the chart where the majority of market participants
would potentially be acting upon many of the bullish or bearish signals within a
very well‐defined window of time. This has the potential for very strong reactions
in the market, frequently precipitating rapid reversals or strong continuation of the
existing trend should an unexpected violation of the confluent price zone occur.
The following charts are some examples of price‐time clustering in action in
various markets.
Figure 27.29 depicts a price‐time confluence comprising an apex reaction time
line and cycle‐peak projection on the daily Silver chart.
Figure 27.30 depicts price‐time confluence at Point X, comprising a cycle‐peak
projection and a channel top on the daily 10‐Year U.S. Treasury Note chart. No-
tice that the Treasury note price corrected at that point.
Figure 27.31 depicts price approaching a price‐time confluence comprising
cycle peak projection and a resistive internal line on the daily PowerShares DB
U.S. Dollar Index Bullish Fund chart.
Figure 27.32 depicts price‐time confluence comprising cycle–trough projec-
tions, support from a lower regression band, and a central bank—backed support
level on the daily EURCHF chart. Point X represents the best entry point for a
potentially profitable long position.
fIgure 27.28 Apex Reaction Time Line Cluster on the Four‐Hour Silver Chart.
Source: MetaTrader 4