a way, most Forex systems are built on the idea of confluence. By applying confluence on the price chart, you could have entered the market at the right time and made a profit on this trade. It all depends on what you use to plan your trades. This is exactly what the casinos. They know they have the upper hand because they stack the odds in their favor. Click Here to Download Conclusion There is no hard and fast rule about how you can harness the power of trading with confluence.
However, when developing and using confluence based trading systems, you need to have a thorough understanding of the indicators you are using. This type of price action confluence, where you see support and resistance zones that overlap Fibonacci levels, are extremely powerful signals. You can use it with all major pairs but you must use it only with these time frames: 5M 15M 30M and.
Forex confluence indicator
If this area is empty, then the trader should not place an order, he should rather scroll through the timeframes to see if there is any where the indicator has a signal. One thing, which is important to note, is that when you experiment with confluence, you need to choose indicators that are independent of each other not calculated using each other. If none, then the trader should look for another currency pair or wait for a signal on the same currency pair. But Im here to tell you that confluence is the most powerful tool a trader can use, regardless of how he/she trades. You can combine several technical indicators to find a confluence and take the trade when all these indicators line. To keep things simple, Im going to name each piece of confluence a Confluence Factor (CF). Four days after the ADX signal, you will notice the SMA 5 crossed below the SMA 21 (labelled number 2).