Trading Confluence Input From A Blog Reader


trading success forex trading strategies

I received a comment from a reader who has taken the time to not only read the trading strategies information but also implement it.  That’s how you plant the seeds of success!

Hello, i just want to say firstly that you are greatly appreciated and everything you’ve done is top class.

I’ve gone through the confluence and price action article you did and was blown away. It’s been something i’ve heard a few times here and there but you took it to a whole new level and opened my eyes.

I have an example i would like to share i don;t know how i can upload a screenshot but it’s on EURUSD 1HR time frame. At 1.12014 price met a confluence zone of a fib level 0.618 and a trend line hit.

On the same pair in the 4hr time frame you can see a more juicier set up. At 1.11670 price met a confluence zone of fib level 0.618 + trend line hit and Pin bar following an engulfing pattern to confirm an eventual 100 pip move.

Please let me know how i’ve done. Im feeling very confident.

One of the vital pieces of information is that this person has actually put the writings to work.  When it comes to trading confluence, there are many ways to approach them and this trader used:

  • Fibonacci levels – not an edge in themselves but a great tool to help frame price
  • Standard technicals – trend lines and support/resistance lines while subjective, are a valid trading tool.  Consistency in approach is key.
  • Price action and candlestick patterns – In certain contexts, these are vital attributes to any trading method
READ  Top 9 Best Forex Price Action Trading Websites On The Planet

EURUSD 4 HOUR CHART CONFLUENCE

CONFLUENCE TRADING

This is the chart I believe the trader was looking at in terms of confluence.  Let’s take a walk through the chart and see what pops out at us immediately.  Look to the red circle to see where everything comes together.

A.  Down sloping trend line that is broken and price rallies.  Price comes back to test the top side of the trend line

B.  Fibonacci level of 61.8%.  There is no magic in Fibonacci but it does help a trader to zero in on a level to consider a trade opportunity.

C.  Support line but it’s an inner support line.  While many traders will use the extremes of price, look inside the extremes as well.  Follow that support line left and you can see that the price zone held some significance many times.

D.  Engulfing candlestick showing at this moment the bulls are firmly in charge.

Could you trade that?

Absolutely.

All variables were in place except the engulfing candle long before price reached that level.  This would have you sitting on your hands until price came into the zone of opportunity for your trading.

Free Trading Information

All the content including the Forex trading signals on this site are free.  A lot of time and effort has gone into these posts to help you get on the track to success in trading.

Will you all make it?

No.

But for the small percentage that will, I hope what is on this blog has helped you attain the level of trading success you desire.

READ  Can A Forex Trader Really Make Millions?

 

2 Responses

  1. Fraz
    • shaned