Integrated Technical Analysis
from a time cluster? Figures 27.4 and 27.5 illustrate the various dispersions of
price and time clusters. (TL in Figure 27.5 is short for time line).
One way to approach this is by analyzing the average dispersion of past clus-
ters specific to a particular market. There is a fair amount of subjectivity as to
what constitutes a past price cluster. Nevertheless, the practitioner should try to
gain some familiarity with past cluster dispersion amounts as a basis for gauging
the degree of reliability of a cluster. The strength and reliability of a cluster de-
pends on the density of price barriers it is composed of within a range of prices.
A cluster is regarded as more reliable if a greater number of barriers are concen-
trated within a narrower range of prices.fIgure 27.4 Dispersion of Price Cluster Levels.fIgure 27.5 Dispersion of Time Cluster Levels.