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with an overbought signal on the stochastics with above average volume. Again,

notice how price declined after testing the resistive confluence at Point 2. Points

3 and 4, comprising a test of a larger downtrending channel top and a two prior

resistive price levels formed on the 29th of March and 2nd of April. Both points

also coincided with overbought stochastics and above average volume.

Figure 27.12 depicts a price cluster comprising a multi‐tested prior resistance

level and a 50 percent Fibonacci retracement level on the daily chart of 3M Co.

Note that the area of application for the Fibonacci retracement levels lies after the

lowest price in October 2011. Notice how prices retested the resistive confluence

level in November and again in December 2011.

fIgure 27.10 Fibonacci‐Based Price Clusters on the Daily Silver Charts.

Source: MetaTrader 4

fIgure 27.11 Price Confluence on the Daily EURUSD Chart.

Source: MetaTrader 4