Now that you know the basic time projections to run for your analysis, you
want to look for a coincidence or confluence of at least three of these time
relationships within a relatively tight range of time. That is essentially the
definition of a time cluster. These cycles will identify a time window for a
potential trend reversal—if the market is actually trending into it. For example,
if the market is rallying into timing, we will look for a possible high and
downside reversal to develop as the odds for such a reversal are higher at this
time. If the market is declining into timing, we will look for a possible low
and upside reversal to develop. Let’s talk about what we should consider
“a relatively tight range in time” and a “time window” and define them.