On November 24 2021 I posted on social media @AidanFX “ EURJPY Watch for a move lower from current prices. Watch for selling opportunities against 129.60 stop level targeting the 128.00 – 127.80 area. “
Confluence trading is a combination of two 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, Head and Shoulders etc.), price action analysis (Support & Resistance, Supply & Demand Zones, Candlestick analysis etc.) and indicators (RSI, Moving Average, Stochastic etc.) are technical strategies/techniques used when trading a confluence setup. The charts below show a confluence trade setup that signals a trader on which side to take the trade.
SELL Trade Setup
1. Bearish Divergence Trend Continuation Pattern (Pink)
2. Price respects support/resistance level (Blue)
3. Price respecting Dynamic Resistance 200 MA (Black)
4. Stochastic in overbought levels
EURJPY 1 Hour Chart November 25 2021
Entered the SELL trade at 129.25 with Stop Loss at 129.60 and Targets at the 1:1 RR minimum with full target at the 1:4 RR. EURJPY moves lower and on November 26 2021 price hits 1:4 RR target at 127.85 from 129.25 for +140 pips (+4% gain risking 1% on every trade)
EURJPY 1 Hour Chart November 26 2021
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 followed me on social media you too could have caught the EURJPY 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