Trading Confluence of Chart Patterns
Trading Confluence of Chart Patterns (November 2017)
Technical Analysis is the study of behavioral patterns of various technical events. Confluence is when there is more than one technical analysis concept coming together at the same point in the market. Traders find a setup which has multiple price concepts from various non-correlated techniques or multiple price-patterns have found a high probability trading opportunity and there is a high chance of the trade working out successfully. Finding a confluence could eliminate noise from validating signal. When multiple ideas or events begin to unfold, traders look for confluence to have an edge before entering a trade.
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