Trading With Confluence Level

What is confluence?

Confluence is the occurrence when two/threeor more signals opportunity come the same point.

When two or more levels come together at a certain point on the chart, that’s the confluence.

Confluence trading is the same kind of phenomenon where two or more different rivers meet and make one body or point.

Confluence in trading happens when different technical signals come together to anticipate the same price action movement.

Different technical signal for confluence level:

#Some traders look at Support and Resistance.

#Some traders look at Trend Lines.

#Some Traders look at Fibonacci Levels.

#Some Traders look at Candlesticks.

#Some Traders look at Indicators.


Combination of some confluence level:

#It may the combination of trend line with Fibonacci level and moving Average as support resistance.

# It may the combination of a pin bar with support resistance along with stochastic over bought or oversold position.

#it may the combination of trend line with candle pattern with chart pattern and many more.

It has no limitation.

A confluence level with 3 technical signal is good but 4 or more is excellent.  

In this chart we found one excellent confluence level for sell.

It is excellent confluence because:

1.It is one horizontal resistance level

2.Two trendline act as Resistance.

3.Bollinger band upper line act as resistance.

4.Stochestic Indicator   overbought.