What is Confluence Trading?
๐ Combining multiple techniques for higher probability trades.
๐ฏ The more factors aligning, the stronger the setup!
Key Elements of Confluence Trading
๐ 3rd Trendline Touch
Example: Price bounces perfectly off the trendline.
Why Itโs Key: Confirms the trend is valid.
๐ Fibonacci Levels (61.8% Golden Zone)
Example: Price retraces and reverses at 61.8%.
Why Itโs Key: Aligns with key support/resistance.
๐ Morning Star Candlestick Pattern
Example: Bullish reversal candlestick forms at support.
Why Itโs Key: Indicates a strong buyer comeback.
Confluence Trade Recipe ๐ฅ
Spot a trendline touch.
Check for Fibonacci alignment (e.g., 61.8%).
Look for bullish candlestick confirmation (Morning Star, etc.).
๐ฏ Enter confidently at the confluence zone!
Pro Example
๐ Setup:
Price touches trendline at 61.8% Fibonacci retracement.
A Morning Star candlestick confirms bullish reversal.
๐ฅ Action: Enter long position at confluence, with tight stop-loss below support.
Why Confluence Trading Works
โ
Reduces risk.
โ
Confirms trend strength.
โ
Aligns multiple signals for high-probability setups.
Key Tip
๐ Patience pays! Wait for all signals to align before jumping in.
๐ผ Use confluence to stack the odds in your favour and dominate the charts!