THE HAnDbook of TECHnICAl AnAlysIsFigure 27.17 depicts price on the same chart as Figure 27.16, but with the ad-
dition of volume spikes on the hourly AUDUSD chart. Reversals in price usually
occur on volume spikes.
dynamic price Clusters
Single or multiple overlays that change their value with respect to time are also
expected to unfold initially and primarily as reversals in price. There is no pre‐
knowledge of the precise levels or zones of potential future reversals until price ac-
tually tests or makes contact with these overlays. As such, there is some a mbiguity
associated with the final determination of these reaction levels. They may therefore
be regarded as price‐dynamic indicators, since the prices that they are indicating
fIgure 27.16 Price Confluences on the Hourly AUDUSD Chart.
Source: MetaTrader 4
fIgure 27.17 Price Confluences with Volume Action on the Hourly AUDUSD Chart.
Source: MetaTrader 4