Using Confluence Techniques To Profit in Forex Trading
This technique is actually already commonly used in trading systems owned by professional traders. But it seems this technique is still a secret for beginners.
This technique is actually already commonly used by professional traders. But it seems this technique is still a secret for beginners. Confluence is easily interpreted as a condition accompanied by the occurrence of other situations that support the strengthening of the condition.
Suppose there is a trend condition, when there is now an intersection with a MA setup, and so on. Well, it can be understood as a Confluence.
Determining A Condition Of Confluence As An Opportunity
Because many beginner traders who do not know this technique, then I will try to convey with examples that I have used so far. This technique can actually be applied to any trading concepts that will or have you used. In fact this may be your use as a foothold to become more profitable like professional traders in general.
1. We use the basic rules commonly used in the world of forex “trend is your friend”. I must find this condition as the basis of Confluence technique. In this case an uptrend.
2. At the same time, the retrace price of a new high to a key support area.
3. There is support from the candlestick pattern. A pin bar is formed to strengthen key support positions. We know that pin bar probability is reliable enough is not it?
4. Dynamic support of an MA indicator appears at the same time. Incidentally I still have to use the indicator to convert Confluence technique.
5. After conditions and situations occur in front of the eyes, then I am ready to open a buy position.
Complete Confluence = Profit Warranty
As more and more of a situation occurs simultaneously in a Confluence condition does this guarantee us to be profitable in it? Does it use 5 situations that occur together and support each other, providing a guarantee to always profit? I said … not too. You can still feel the loss.
So what’s the value of this technique? This technique will make it easier for you to be more organized in trading. That way you will be better trained to be patient in waiting for a condition (especially if you use 4-5 situations as a condition to wait for confluence to occur). I convey a parable that will also support your performance in a career as a trader. Think like a casino business. This business is not every time in its daily movement is always a profit. But they see the business in a matter of years. At the end of each year they always make a profit. This business is not a sprint race but a marathon run.