Рис.25. YFI cryptocurrency, timeframe 5 minutes (1 candle – 5 minutes of price change).
Fig.26. Clusters of two right candlesticks to Fig.25.
Usually a cluster is called a system formed from a set of elements. In our case, the system is 1 candle or bar, and the elements are the volumes of purchases or sales made at each price that the candle covers. To make it clearer, let’s look at Figures 25 and 26 made in CScalp software. In Fig. 25 the right 4 candlesticks are highlighted in blue, and in Fig. 26 the clusters formed inside these candlesticks are highlighted in blue. As can be seen from Fig. 26, the candle consists of many “patches” collected from volumes passing at each price of the glass. The cluster displays at what price there was the greatest interest and where exactly there was a struggle for the price. Those places in the cluster where the largest volume accumulates form levels, i.e. places of struggle for prices and with each price passing through the levels, the struggle will resume and provide either resistance or support. Figures 25 and 26 for example show clusters for 5 minute frames. In practice, however, we recommend using at least 15 minute frames that give more information about the levels.
We recommend watching videos on Youtube dedicated to clusters for a better understanding of how to use them.