ChAPter 27 Integrated technical Analysis
t
echnical analysis works best when it is applied in a timely and effective manner.
Effective application consists of looking for areas of supportive and resistive
confluences or clusters, which tend to provide the strongest and most reliable bar-
riers to price. Such clustering may be purely in the price domain, but learning to
identify clustering in both the time and price‐time domains will greatly improve
the accuracy and reliability of any forecast. In this chapter, we will discuss all three
forms of clustering and apply technical analysis in the most efficacious manner,
that is, via an integrated approach.27.1 The Integrated Components of Technical Analysis
Integrated technical analysis is the art and science of locating significantly clear
and obvious price levels or zones comprising a concentration of supportive or
resistive indications. Such concentrations are usually referred to as bullish or bear-
ish clusters, confluences, agreements, or convergences.le a r nIn g ob j eCtIv e sAfter studying this chapter, you should be able to:■ Differentiate between price‐static, price‐dynamic, time, and price‐time based forecasts
■ Identify important and significant bullish and bearish clustering and window oscillator
confluences
■ Recognize multicollinearity on the charts
■ Employ multiple timeframe analysis in forecasting potential price behavior
■ Integrate risk and money management components for better forecasts
■ Combine price and broad market indicators to identify potential market reversals