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CONFLUENCE
[ back to Setups ] [Band
confluence] [ Traders Dream -
fib/BB/divergence ] [CCI and BB] [CCI
divergence and 162 fib extensions]
- When I was taught confluence is was used to describe when multiple Fibonacci
retracement and extension levels of support or resistant levels were in very
close proximity increasing the strength of the support or resistance.
- I expand on this to include any and all support or resistance area such as
Floor Trader Pivots, Bollinger bands, Keltner band, other bands, simple
trend lines, channel boundaries, Andrews Pitchfork...etc.
080603 series of 4 below charts--
Confluence using the concepts of Market
Profile, Value area, POC, fib projections, BrachZone,
Andrews, divergence,
ascending bottom trendlines,
targets become reversals, 123 reversal
Here is today's price action chart 15min.
I spent 70% time watching this chart on ES in addition to a 3
minute and 266 tick chart from time to time. This chart is a
continuation of similar chart from yesterday.
The day started with all 3 Andrews draw Red-down
channel Andrews, Black-sideways channel Andrews and the newest Blue-
up channel Andrews.
I discussed with some traders and posted
on dacharts last night after market close on possibilities for
today, I allowed for either more down which would have to break the MedianLine
(middle) of the Red Andrews or up continue in the just formed Blue
one. Price had traveled a long way EOD yesterday and close at a
162 fib extension with confluence at the red MedianLine. from that
perspective a retrace was due. Targets often create retracements and/or
reversals. If the market did not gap down I would look to go long at the
bottom blue Andrews line with upside target of yesterdays POC
97475.
Markets opens gap up I went long on slingshot "1", took a
little heat and exited and went short "2" at the black Andrews
line with showed divergence Anticipating a test of the Red Andrews to
ride to POC. A 123 reversal pattern was forming (see 3 minute
chart) and when price touched Andrews again had divergence and a
BrachZone for a long. I took partial profits (see 266 tick chat) and basically
held all day as I traded the bonds. There were a few other longs on
retests on the ascending bottom trendline. Not all the ones shown (3 min
chart). Clearing the 966 area=pivot then red Andrews were mile markers
along the way. Finally, big exhaustion candle to target and reverse for
short. Had divergence on both the LT and ST stoch. 96350 had
formed as POC for today and was target. As price declines the POC
shifted to 969 and I exited in the last BrachZone. The
yellow boxes on chart are BrachZones. This may seem like a lot of
concepts. If you master and build on them one at a time you'll get
there. I found it quite a relaxing day to trade.
Tmwr I look to go long against the Andrews again back up to POC 969
then middle Andrews will allow 985 if it gets past that 990 tops and the
Blue Medianline. Good Trading to all NQoos |
miracles,
they are everywhere.............. 
