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Hey James...hope this as good as place as any to ask.....when you are identifying clusters...are they simply monthly, weekly, daily, updated accordingly, or do you keep dailies for a week, weeklies for a month...monthlies for a year to get "mega" clusters over time? Thanks.. |
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Hey Terry_I,
Mega clusters.. now that is interesting!
Actually that would be too much horizontal lines going across your charts. I replace my daily pivots everyday, my weekly pivots every week, and my monthly pivots every month.
The trick to my methology using pivot clusters is identifying which pivots are significant and which are not. On top of just the pivots, I will look at valu high/low pivots, previous days high/low (also high/low for several days back),
POC, and open gaps.
Plotting all these lines on your charts will give you a ton of price levels. This can easily lead to analysis paralysis. So its important you filter out the key price levels from the weaker ones. For example, if Support 1 is five YM points above the previous days low, I simply ignore S1 and use the previous days low.
Hope this gives you a better idea.
Regards,
James