Where I projected the 1.618 extension from might be a little difficult to
see or understand. That swing actually might be more visible on a 60-minute
chart. Eventually, you will be able to train your eye to find all possible
swings that you can use to confirm a price zone as an important decision.
Figure 6-25 shows what happened around that key price cluster decision
in Google. Ahigh was made at 484.24, and it was followed by a $45.56
decline rather quickly. Once Google hit this resistance and failed to clear it,
the trader would start looking for sell triggers to enter a short trade using
this price cluster resistance.