THE HAnDbook of TECHnICAl AnAlysIsimmediately preceding peak or trough, especially in consistent and regular cycles.
Refer to Chapter 20 for a detailed discussion on price and time projections via
cycle analysis.
bullish and bearish price Clusters
Clusters may be formed in price and time, or on a combination both elements,
that is, in price‐time clusters. Bullish and bearish indications are usually associated
with price and price‐time clusters. Bullish and bearish clustering are not usually
associated with time‐based projections, with the obvious exception of cycle‐based
projections. As mentioned earlier, most non-cycle‐based time projections merely
represent indications of potential activity in the market, with no indication or
information about the direction or type of activity that may subsequently ensue.
Clusters may be identified in eight basic technical setups:
- Multiple price‐static level agreements, or static price clusters
- Multiple price‐dynamic agreements, or dynamic price clusters
- Multiple time line agreements, or time line clusters
- Multiple price‐time agreements, or price‐time confluences
- Price‐oscillator agreements
- Single oscillators in MTF directional agreement
- Multiple oscillators in STF directional agreement
- Intermarket and broad market trend agreements
Identifying Clusters: When Is a Cluster a Cluster?
The task of identifying a price or time cluster may be somewhat challenging. At
which point do we include or exclude a price level from a price cluster? Similarly,
we may also ask, at which point do we include or exclude a projected time line
fIgure 27.3 Reliability of Price‐Time Single Overlays.