What is confluence in forex trading?

[alimartono]

meeting in forex trading almost never happen in forex trading but the meeting occurred at the time of the sale and purchase transactions in forex trading,

[jo9y]

The trend affects my trades. Also my technical and fundamental analysis also help determine the direction of my Forex trade. When its comes to my technical tools, I use my bollinger band to know the direction of the trend.

[goldenmember]

Confluence happens when two indicators show the same thing. I honestly think that it is not reallyt useful at all to use in forex. The problem with using it in forex is that you don't need two things to say the same thing. You only need to have one indicator or you get confused.

[ishvara]

I will always use price action confirmation to enter a trade - whether this be a bounce of highly confluence support/resistance or a reversal setup.

Other forms of analysis in forex and also price action should be used in forex. This helps a foex trader to know the direct thing that they need to do and the right direction that they should follow in their trades in forex.

[theplayer17]

good article, I agree with what you say. because the price action along with the combined risk management is very good. I think you are a good person, because you explain the basics of trading is so full

Fibo, price action, pinbar, sup & dem, candlestick patterns, all very important! agree: D

learn, learn and keep learning ^. ^ v

[jati]

Confluence means when two or more reasons for entering trades collide with each other. Suppose, when a fib 50% and a good resistance is at the same level, then that is a very strong level for entering trades. The more confluence you can find, the stronger the level, but don't try to confuse yourself with trying to find confluences, confluences work great as long as you know them.

[esif]

What is CONFLUENCE in Forex Trading?

Alot of people have this question in mind on what is confluence in forex trading.
And why is it so important.
Lets start with the Forex Market.
It is made up of traders (Big or Small) to determine the flow of the market.
For example: if there are more people buying the Bulls than the bears at a period of time. The market will most likely go Bullish. And so forth if it goes bearish.
Therefore, forex trading is about understanding the market sentiments. �Where is the big guys with the big influx of money moving the currency market to?�
And this leads to CONFLUENCE.
For example.
Forex Trader A trades only on Fibonacci signals
Forex Trader B trades only on Moving Average signals
Forex Trader C trades only on Support & Resistance
Forex Trader D trades only on Price action
Forex Trader E trades only on News
Forex Trader F trades only on Divergence
Forex Trader G trades on other indicator signals
Example: Forex Trader A sees a fibonacci signal which is strong and he enters it long. But Forex trader B & C sees their signal and took it short. The market will most likely head short if there are more traders who took it short than long. The bears won the game.
From this example, you can see why Confluence is so important in forex trading and why professional forex traders enter only on confluence.
When we combine all the signals, and if they come together in the same direction. Then there is a very good chance that the market will move your way. Because all the forex traders sees their signal (eg. long) and entered it. Regardless of which signals you see, it shows short.
This shows that, the more trading signals you get on your side of the trade, the higher the chance of winning.
Of course we need not wait until all the above forex signals come together. So long as we have 3-5 signals that comes together. We have gotten ourself a good trade. And if you take these kind of trades continuously, your forex account size is sure to grow.

dear i have read your post, the course of your seems very good, here i also know a definition of a confluence, i think it is the area, where 2 Fibonacci Levels combines, so the "Confluence" or "Agreements" have greater probability of success then common fibo levels...

[alamFX]

I will always use price action confirmation to enter a trade - whether this be a bounce of highly confluence support/resistance or a reversal setup.

[roopesh11]

If we want to make our tarding more comfortable then we should use the help of indicators in our graph chart. They will show us the market high and low and also indicates us the entry points through a signal. It helps us very much.

[mcceducation]

i am strongly support you my dear friend, if we are cannot combination the indicator its not give us very good result, need very good fundamental analysis, if we are very good combination hope we take very goof profit using the nice analysis. so many many thank for the nice information.