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after 5500 rpm u are in fact losing hp, but when u take into consideration that when you shift at 5500 rpm you will drop way below 4000rpm which is much lower in the powerband than when u shift at 6000 or 6200 which will drop you right around 4000 or a little higher. You dont want to shift at peak power, that does not make sense, especially when you take into account the gearing.
 

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If anyone's keenly interested in finding out exactly when to shift, I have code for a program that tells you. You give it your gear ratios and some data points from a dyno graph and it spits out optimal shift points for each gear.

Like WS said though, sometimes it makes sense to hang on to a gear past the point of diminishing returns in order to end up in a favorable spot in the next gear. This is especially true in cars with long gears.
 
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