Cluster trading is a very simple relationship between the current price and the current pattern or "cluster" as I call them, formed by the recent bars. It is a very simple algorithm evaluating how the current price reacts to or breaks the highs or lows of the recent "Cluster" and the previous closes and how important that cluster is. What I trade is the movement between the clusters that I determine are important. Figuring out these price ranges or congestions I totally disregard volume. Building and breaking bottoms and tops, that's all. I just have to distinguish important from less important clusters.

What I was searching for was something that was always true and fit the type trader I had found myself to be. I kept in mind that I had never known of any trader or any method that worked that was not so simple it appeared stupid. This appears stupid but it works like a charm for me :)

Maybe some people would find it easier to think of this as breaks of previous pivots. That might make sense to more traders than the cluster idea. It is not how I think of it but might help others understand it better.

Another idea new traders should think about IMHO. You should define what "Holy Grail" means to you. What does a method have to do to meet your needs and wants. You maybe surprised how much that will help. Just MAKE A LOT OF MONEY is not good enough. This exercise will also go along way in helping you define who you are as a trader.

I think it is far more complicated than that. Are you trying to make a living off a $30,000 account or turn $200,000 into a million over the next 5 years.

Could you trade a program that made 50% a year on 3 trades. What if that system had 75% draw downs and had to be monitored on a 15 min bar chart everyday just to find those 3 trades a year.

How about a tic chart program that trades 30 times a day for 25% return a month with wild fluctuations. Would you prefer a steady equity curve that made 20% per year with 85% win rati

The question is, what DEFINES YOUR "Holy Grail"? What does your goal LOOK LIKE? All these questions and many others have to be answered before you can settle down and feel comfortable trading what you have developed.

The answer to these questions determine the path you need to follow BUT MOST IMPORTANT OF ALL, they will tell you when you have reached where you are going and give you the confidence to stick with a method.

PS. remember the puzzle we taked about. How do you know what pieces you need if you don't know what the puzzle is going to look like. And here is the REAL strange part many new traders will find hard to believe, you can actually put a puzzle together and find it is the wrong one.