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Confluence

What is Confluence❓✅ Confluence refers to any circumstance where you see multiple trade signals lining up on your charts and telling you to take a trade. Usually these are technical indicators, though sometimes they may be price patterns. It all depends on what you use to plan your trades. A lot of traders fill their charts with dozens of indicators for this reason. They want to find confluence — but oftentimes the result is conflicting signals. This can cause a lapse of confidence and a great deal of confusion. Some traders add more and more signals the less confident they get, and continue to make the problem worse for themselves. ✅ Confluence is very important to increase the chances of winning trades, a trader needs to have at least two factors of confluence to open a trade. When the confluence exists, the trader becomes more confident on his negotiations. ✅ The Factors Of Confluence Are: Higher Time Frame Analysis; Trade during London Open; Trade during New York Open; Refine Higher Time Frame key levels in Lower Time Frame entries; Combine setups; Trade during High Impact News Events. ✅ Refine HTF key levels in LTF entries or setups for confirmation that the HTF analysis will hold the price. HTF Key Levels Are: HTF Order Blocks; HTF Liquidity Pools; HTF Market Structure.
OANDA:XAUUSDEducation
by Snick3rSD
GameStop: Remains In A Position to Break Bullishly From Its ZoneGME has been getting sold off with the macro for quite some time and it continues to push deeper and deeper into dangerous territory. At this point in time, it has pushed slightly below the 0.382/0.886 Confluence Zone and is now at the 200 SMA, but with that, we can see that the Local Bullish Shark can extend into a 1.618 Extension, so the Breakout watch is far from over on GME though we are getting towards levels where one may leave it alone. I would say that if GME breaks below $11.50, there would be a very distinct chance of it dumping down to $9.5, but if it instead holds above $11.5 and pushes back above $14.00, then we could instead see GME make a rapid move up to $18.00, which would be just high enough to test the supply line of our Channel/Falling Wedge. From there we could possibly break out of it and go for the measured move, but for now, I'd say one would probably want to have a short-term position to take profits on at $18.00 and a separate longer-term position to hold strong until GME gets the big measured move breakout to $74 - $134
NYSE:GMELong
by RizeSenpai
4
AMD DOUBLE RESISTANCE! PERFECT?AMD had a nice pump this week and not it's in a little bit of trouble. There is a confluence stopping it's bullish price action. Two major resistance levels merge and AMD looks like it will need to retrace back to the support below before another attempt at moving higher. If price stays where is it by Monday open, I will enter a short position with my stop above the current local high. Calculate Your Risk/Reward so you don't lose more than 1% of your account per trade. Every day the charts provide new information. You have to adjust or get REKT. Love it or hate it, hit that thumbs up and share your thoughts below! This is not financial advice. This is for educational purposes only.
NASDAQ:AMD
by Navitility
2
📈💼 Mastering the market with Support & Resistance ConfluencesWhen navigating the intricate world of trading, skilled traders keep a keen eye out for specific signals that guide their entry and exit decisions. What's even better? When multiple signals converge at a particular price point, it's like a symphony of market harmony. In trading lingo, we call this phenomenon "Confluence." These confluence points serve as the cornerstone for building well-informed trade plans. It allow us to maximize the winning rate and therefore constitute a major key to transform a losing trader into a winning trader. In this blog post, I'm here to empower you with insights and examples of support and resistance confluences to elevate your market analysis game. 📌 Essential Knowledge First 📌 Before you embark on the quest to spot confluences on your price charts, you must lay a solid foundation of basic technical analysis concepts. This entails mastering the art of plotting support and resistance levels, skillfully drawing trendlines, recognizing fundamental technical chart patterns, and understanding the proper utilization of technical indicators. Without these fundamental skills, confluence points will remain elusive, leading to flawed analysis and mistimed trading decisions. 🤝 Demystifying Confluences 🤝 Confluences manifest on your charts when two or more technical indicators intersect at a specific price level. For technical analysts, these moments are akin to uncovering hidden treasures that signal opportune moments to enter or exit trades. 📈 Understanding Support Confluences 📈 Support confluences are the sweet spots where two or more technical support levels converge at a particular price point. These magical intersections signify robust buying pressure and present optimal entry points for purchasing a stock. A support confluence typically boasts two or more of the following bullish signals: 📈 Bullish Divergence: When price and a technical indicator move in opposite directions, often hinting at an upcoming price reversal in an upward direction. 🔄 Price Rebounds at Key Support Level: Especially powerful if it aligns with a multi-year support level, suggesting strong historical significance. 📐 Price Rebounds at Trendline Support: When price bounces off a trendline, it signifies a technical support that traders closely monitor. 🧮 Price Rebounds at Fibonacci Support Level: Fibonacci retracement levels often serve as critical support zones. 📊 RSI within 20 - 30: A Relative Strength Index (RSI) reading within this range can indicate an oversold condition and potential for an upward bounce. ⚙️ MACD Bullish Crossover: When the Moving Average Convergence Divergence (MACD) indicator forms a bullish crossover, it signals potential upward momentum. 📈 Dynamic support: when you use one or several moving average Now that you have a clearer picture of support and resistance confluences, you're equipped to elevate your trading prowess. This is how you draw the highly qualitative setups that will boost your trading career! Remember, trading is an art and a science. Mastering the nuances of confluences can significantly enhance your ability to make informed trading decisions. Happy trading, and may your charts be filled with profitable confluence points! 📊📈💰 Feel free to share your toughts in the comments section, follow me for updates and don't forget to press the like button if you want more qualitative insights like this one 🌊🚀
TVC:USOILEducation
by Thomas_Zito
1
USD/CHF - Too many signs to ignore!!Time Frame: Weekly/Daily – Analysis & Levels 1 HR – Confirmation 1 HR/30 Min - Execution Trend: LTF Pullback within HTF downtrend. Resistance and bounce at 50% retracement on fib. - HTF (Daily) = Downtrend - LTF (1 Hour) = Uptrend This trade has a lot of confluence for us to have a pretty sizable move to the downside. 1. We have a symmetrical triangle pattern (in black) holding us within these levels since 2012. In July 2023 we broke out of this pattern with a ton of strength, bringing us down to a level of strong support and a low since 2015. 2. Price rebounded from this support but with unimpressive volume, leading me to believe there is a lack of liquidity for buyers to get the necessary push up to break back into the triangle and former trading zone. 3. This rebound/retrace also led us to 50% on the fib which we are holding strong at with strong rejection indications. 4. We currently in an already mitigated demand zone that was formed from a prior liquidity grab – and below that, a strong unmitigated demand zone & POI. 5. We are approaching a retest of the bottom of the triangle which will require a lot of volume to break through – ans at the same time, we are approaching the top of the daily trend line (blue) in which we have rejected 3 times this year. Confluence Review: 1. Continue higher time frame downtrend 2. Break below weekly/10 year trend line/support channel – Heading for retest of break point 3. Top of strong selling channel which has proven to be resistance 3 times 4. Strong support @ .857 that led to rebound but with low buying volume 5. Resistance at 50% retrace (current price) My Trade Plan and Hypothesis: Trade 1: Resistance at upper blue trend line and failed support at lower green trend line. I predict price to mitigate the lower demand zone/POI. I will wait for price to reject the top of our LTF selling channel (blue trendline on daily chart) and subsequently fail support on the LTF buying channel (Green trendline on 1 hour chart). Stop Loss – Above/break of blue trendline Take Profit 1 – Strong Weekly Support / Recent Lower Low = 2.32 R:R Take Profit 2 – Unmitigated Demand Zone / POI = 6.5 R:R Trade 2: - Resistance and failure to break back into black HTF triangle. If price breaks out of the daily TF blue selling channel, I will wait for a retest of the bottom of weekly symmetrical triangle (black trendline on all charts). Once there are signs of strong rejection I will enter trade on 30min/1 hour timeframe. Stop Loss – Above/break of bottom of weekly channel Take Profit - Unmitigated Demand Zone / POI = 7.38 R:R
Short
by ReigningTrades
📉 Seizing Opportunity: USDCAD 1H Double Top Breakdown 📉USDCAD presents a compelling selling chance! 🛑 A prominent double top formation has emerged, punctuated by a neckline breach, a successful retest, and a resounding rejection at this pivotal juncture. The stars align for a favorable entry to ride the downside momentum. 🧭 Leveraging the strength of the moving average and neckline, there is a confluence of resistances to strategically position our stop loss above above 1.35770 and trade safely. 🎯 Aiming for success, my take profit is located at 1.34200, while my target lies at 1.34700. Feel free to share your toughts in the comments section, follow me for updates and don't forget to press the like button if you think this insight was helpful 🌊🚀
Short
by Thomas_Zito
9
Gold -> The 90% Probability SetupHello Traders and Investors , my name is Philip and today I will provide a free and educational multi-timeframe technical analysis of Gold 💪 After the simpe monthly break and retest and also a retest of the 0.382 monthly fibonacci retracement Gold perfectly created the bullish continuation towards the upside and I do expect new all time highs on Gold in 2023. Gold is also retesting the weekly support trendline of the very obvious rising channel and in confluence with bullish moving averages I do expect a bullish push from here. Looking at the daily timeframe you can either be agressive and enter a position right now or you can wait for the confirmed inverted head and shoulders and a breakout of the daily bullflag and then this will be a very high probability setup overall. Keep in mind: Don't get caught up in short term moves and always look at the long term picture; building wealth is a marathon and not a quick sprint📈 Thank you for watching and I will see you tomorrow! My previous analysis of this asset:
FXOPEN:XAUUSDLong
by basictradingtv
46
AI is showing bullish momentumI like the short-term price action on this one. Looking at the 4hr chart, I see that a trading range has developed. The trading range shows higher lows and higher highs. That is the foundation of an uptrend. Within that uptrend on the 10min chart, I see that an ascending triangle is formed. Ascending triangles are characterized by flat tops and rising lows. It shows that buyers are getting more aggressive and sellers remain stagnant. Eventually, the buyers should surpass the sellers. A break of the ascending triangle gives me confidence that the uptrend will continue to the upper end of the range. There has also been a heavy amount of call option buying and put option writing which suggests that institutions may want to take this higher as well. I am watching the following levels closely... Entry above 42 Stop below 40 Target1 44 Target2 47
NYSE:AILong
by Decam9