How to Spot the Confluence Zone | Pro Fibonacci Technique
If you are struggling with the identification of accurate trading entries,
you definitely should try confluence zones.
Note: there are hundreds of variations of confluence elements.
In this example, we will discuss trend lines and fibonnachi.
❗️To identify a confluence zone, the price must follow a trend line
(it should match higher lows if the market is bullish ;
it should match lower highs if the market is bearish ).
Once the trend line is confirmed by at least two touches and consequent reactions,
you can look for a confluence zone.
1️⃣Project a trend line and identify the next POTENTIAL touchpoint of the market with a trend line .
2️⃣Take the last impulse in the direction of the trend.
Draw a fib retracement based on it
(swing low to swing high in case if the market is bullish ,
swing high to swing low in case if the market is bearish ).
3️⃣Take the previous impulse (it must be in the same direction as the initial one).
Draw a fib retracement based on it.
4️⃣Look for a match of retracement levels of the last two impulses and a projected trend line .
In case if two retracement fib.levels & trend line match, you found a confluence point.
5️⃣ Apply it as a safe entry point.
You will get a perfect trend following opportunity.
Let me know, traders, what do you want to learn in the next educational post?
