Confluence trading is a combination of one or more trading strategies/techniques that come together and form a high probability buy/sell zone in a certain area in the market. Market patterns (Elliott Waves, Harmonic, Candlestick patterns etc.), price action (Support & Resistance, Supply & Demand Zones, Fibonacci retracements etc.) and indicators (RSI, Moving Average, Stochastic etc.) are technical strategies/techniques used when trading a confluence setup.
On October 29 2021 (Asia Update) we advised EURAUD was going to move lower in the EWF members only area.
EURAUD 1 Hour Chart October 29 2021
Trade Setup
1. Termination of blue wave (ii) correction signalling a move lower
2. Price respects Support/Resistance Zone (Blue)
3. Price respects Dynamic Resistance 200 MA (Pink)
4. RSI Bearish Trend Continuation Divergence (Black)
5. Stochastic (Overbought)
Entered the trade on the RSI SELL trigger at 1.5470 with Stop Loss at 1.5525 and Targets at the 1:1.5 RR minimum with full target at the 1:2 RR. EURAUD moves lower and on October 29 2021 price hits 1:2 RR target at 1.5360 from 1.5470 for +110 pips (+2% gain risking 1% on every trade)
A trader should always have multiple strategies all lined up before entering a trade. Never trade off 1 simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. If you were an EWF member you too could have caught the EURAUD move lower. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Cryptos, Stocks and ETFs) in 4 different time frames and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Hour Chat Room. Our clients are always in the loop for the next market move.
Try Elliottwave-Forecast for 14 days !!! Just click here –> 14 day trial
Back
