教育

How to Spot the Confluence Zone | Pro Fibonacci Technique

If you are struggling with the identification of accurate trading entries,

you definitely should try confluence zones.

Note: there are hundreds of variations of confluence elements.

In this example, we will discuss trend lines and fibonnachi.

❗️To identify a confluence zone, the price must follow a trend line

(it should match higher lows if the market is bullish ;

it should match lower highs if the market is bearish ).

Once the trend line is confirmed by at least two touches and consequent reactions,

you can look for a confluence zone.

1️⃣Project a trend line and identify the next POTENTIAL touchpoint of the market with a trend line .

2️⃣Take the last impulse in the direction of the trend.

Draw a fib retracement based on it

(swing low to swing high in case if the market is bullish ,

swing high to swing low in case if the market is bearish ).

3️⃣Take the previous impulse (it must be in the same direction as the initial one).

Draw a fib retracement based on it.

4️⃣Look for a match of retracement levels of the last two impulses and a projected trend line .

In case if two retracement fib.levels & trend line match, you found a confluence point.

5️⃣ Apply it as a safe entry point.

You will get a perfect trend following opportunity.

Let me know, traders, what do you want to learn in the next educational post?