It all comes down to the use of confluence. If many people are looking at “Y”, expect a reaction.Perhaps , but at least a greater chance of something happening.When two or more variables are present, a confluence exists and these areas are a good place to look for a trading opportunity.Let’s take a walk through this Forex chart and see if we can find a confluence of variables through You can clearly see that price rallied from “b” right to that area. How to use confluence in a sentence. Video Synopsis -How to develop a forex trading plan – trading confluence 5-29-2009. Confluence to me would be like RSI O/B at previous daily … Figure out a way to do this over and over again and you’ll be well on your way to becoming profitable.
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Did You Know? Trading in CFDs carry a high level of risk thus may not be appropriate for all investors. This is where the combination of various Confluence Factors comes into play.For all intents and purposes we can view confluence as putting the odds in your favor. But the first definition … A Fibonacci retracement is drawn from A-B giving you areas to look for price to return to.Price rallies to the 78.6% level (which is actually a great level due to where order blocks are found on the charts) and notice the huge drop after price hits the 78.6% level. (as an exercise, go through charts and see how price reacts on that level! The flowing together of two or more streams. So why then do only a small portion of traders make it to this level? In this example, we can see that the Stochastics indicator was clearly trading above the 80 level (labelled number 1). In the above forex education video I introduce traders to the concept of forex trading using confluence.. Confluence … Even better, it can force you to be more selective in your trades which can alleviate the “disease” of over trading.Since we can enter the market using confluence, what about exiting? Those traders who can be called consistently profitable have found a way to identify and harness the power of confluence in a way that puts the odds in their favor.The ability to put the odds in your favor is what trading is all about. Price breaks lower but where to exit?“A” is the low of the original move while “B” is the completion. Having said that, the casino knows that by the end of the year it will have made a sizable profit because the odds are stacked in their favor. In other words the more Confluence Factors present on any given setup, the greater the odds are that the setup will move in the intended direction.This is my favorite part because it’s where we get to highlight the power of confluence as it relates to a particular trade setup.To start, let’s say we have a strong uptrend in a given market. The point though is a Here, we simply used the a-b-c move to give us Fibonacci expansion levels and the red arrow is where the trade originates from.If you were in this trade, you may want to do some I don’t know many traders who use one variable to find a trading opportunity. In this article I’m going to discuss what confluence is, why it’s so important and how you can integrate it into your current trading strategy to help put the odds in your favor.Before we get into the details of how confluence can improve your trading, we first need to understand what it is. Never trade with the money that you cannot afford to lose! Share: Talking Points: Psychological price levels can change trends and create swings …
That move down is about 70 pips from the bottom of the trade zone.You may have made more or less depending on how you enter that trade. You know that if you patiently wait for those “A+” setups that your account will begin to grow over the following weeks, months and years. The list could go on and on and the factors you identify will vary depending on your style of trading.
When things collide, many times good things do not result.In trading, the collision of two or more things can be a blessing! The dictionary has the following definition. Hope you can see how a confluence of factors (this example using simple fibs and s/r zones) can give you objectivity in your trading when looking to not only enter, but exit your trades. In terms of trading Forex, we can say that confluence is when two or more factors come together at the same place on a chart.Some examples of these “things” might be a key support or resistance level, moving average, price action buy or sell signal or even something as simple as a strong trend. Please, disable AdBlock extension in your browser ).A confluence is a great thing to look for when going over your charts. Please disable AdBlock or whitelist EarnForex.com. Confluence definition is - a coming or flowing together, meeting, or gathering at one point. This is the daily chart of the EURAUD forex pair. The market has retraced from a recent high and now appears to be finding support at this level.With respect to the key support level, price action has now formed a bullish pin bar from this level. Let’s take a walk through this Forex chart and see if we can find a confluence …
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