The clusters are formed when we see a lot of resistive imprints collected together creating an area of high probability reversal
RTX taking resistance from cluster
we have a cluster of support,
We can see ES taking resistance from a cluster.
Let’s talk a bit how a cluster is made in this image below.
This line tracks the prior support and resistance , when the price is below the line we have less amount of buyers and when we are above this line we have fewer sellers.
first thing is the purple vector, on pull backs it tests the purple vector, that line is tracking buying/selling pressure, it does become tested guaranteed from time to time, you'll see it in past price action where price moves above it then finally the price and the vector intercept each other for a test. what we need to see when this occurs is a respect of the purple vector and the price continuing to hold at or above the line. when price starts getting below it then its telling us a reversion play is in progress to get back under the pivot line. the price Must get under the purple vector before it has any chance to get back under the pivot line.
Now this can be very helpful as we can see price bouncing away from it or even if we get above/below it we can expect a reversal.
QQQ w7/daily, we are still above vector = bullish, still above pivot = bullish, it's challenging the left hand high, so that's a bullish condition,
QQQ w10/15min, keep testing the vector, serving as resistance, no "L1" as of yet so thats still outstanding
NEW- WHEN WE SEE VECTOR GETTING AWAY FROM DIRECTION OF PRICE MOVEMENT THERE IS A BIG MOVE UPCOMING OR PRICE WILL RETRACE
see the bottom right side.