one of the setups that my colleague Ric Spooner specialises in is the Gartley cluster. Unusually today it was me who actually spotted this setup so am writing it up. I won’t go into huge detail about how this setup works because there are loads of them previously done within the blog for you to take a look at. One point that I must make though is that these clusters are not resistance levels meaning that the standard approach is to wait for price to respect the level (i.e. form a peak) and then take the trade.
If you take a short trade after the peak has been formed then your stop would typically be placed above the peak/above the cluster level. The initial price target would be set at around $25.
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All the best,