the hAnDbook oF teChnICAl AnAlysIs■ (^) Projection clusters occurring as a result of projecting multiple price ranges
from various inflection points
■ (^) Combination clusters occurring as a result of a combination of retracement,
extension, expansion, and projection from overlapping or multiple ranges
■ (^) Clusters comprising bullish or bearish signals originating from Fibonacci‐
based operations as well as other overlay indicators
Clustering may also result from multiple time projections via any of the four
Fibonacci time‐projection techniques.
Figure 10.75 displays supportive clusters at levels 1, 2, and 3 comprised of
both Fibonacci retracement levels (measured across the range AB) and Floor Trad-
er’s Pivot levels (at PP, S1, and S2).
Figure 10.76 displays a resistive cluster at the 50 percent Fibonacci retracement
level across the range AB, on the cash‐settled U.S. dollar index. The resistive clus-
ter or confluence is comprised of an upper Bollinger band, a 50 percent Fibonacci
Figure 10.75 Supportive Clusters on the 15‐min EURUSD Chart.
Source: MetaTrader 4
Figure 10.76 A Resistive Confluence on the Cash‐Settled U.S. Dollar Index.
Courtesy of Stockcharts.com