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If you look at a dyno sheet, shifting at 5500 cuts off the top of your power curve, and certainly puts you back in gear with less power. You definitely don't want to be shifting before you hit peak power, and you don't even want to be shifting AT peak power as some people think. You want to capture as much power under the "in gear" region as possible, which means straddling your peak power. In this dyno, you'd want to be shifting about 6700: 
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