On November 3 2021 I posted on social media @AidanFX “ USDCAD can still push higher as long as price stays above 1.2351. Will be looking for buying opportunities. “
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, Candlestick patterns etc.), price action analysis (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. The charts below show a confluence trade setup that signals a trader on which side to take the trade.
USDCAD 1 Hour Chart November 3 2021
BUY Trade Setup
1. Bullish harmonic pattern triggered BUY at the 0.50% Fib. retracement level (Light Blue)
2. Price entered the Support/Resistance Zone (Dark Blue)
3. Dynamic Support 200 MA (Black)
4. RSI Bullish Trend Continuation Divergence (Pink)
5. Stochastic (Oversold)
Entered the BUY trade at 1.2381 with Stop Loss at 1.2351 and Targets at the 1:1.5 RR minimum with full target at the 1:3 RR. USDCAD moves higher and on November 4 2021 price hits 1:3 RR target at 1.2471 from 1.2381 for +90 pips (+3% gain risking 1% on every trade)
USDCAD 1 Hour Chart November 4 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 USDCAD move higher. 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
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