WHAT IS CONFLUENCE IN FOREX TRADING?

asiaforexmentor · Newbie Joined: Feb 23, 2011 Posts: 63

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.
Remember you heard this First from Asia Forex Mentor, and at our Price Action Course – We teach the full forex trading system and strategies for you to apply in your live forex trading account.
It is Not only about Confluence but is also about how to be a CONSISTENTLY PROFITABLE forex trader.
To an awesome trading as always,
Ezekiel Chew Rolling Eyes

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Get the Full Free Price Action Forex Strategies, Visit http://www.asiaforexmentor.com

bonniesmith · Newbie Joined: Mar 14, 2011 Posts: 36

Confluence is a term that is often used in geographical circles, but it is also used when discussing aspects of forex trading as well. In simple terms confluence refers to two things meeting or coming together, and this is commonly used to describe scenarios where two or more technical indicators come together.

GTOptions · Newbie Joined: Mar 24, 2012 Posts: 51

People who are not aware or not well known with forex have bring this confluence about forex trading. To be a successful trader one has to get thorough knowledge about forex and should be aware of the market conditions with controlling his emotions.

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andrea · Newbie Joined: Apr 30, 2012 Posts: 14

Nothing of value is easy. I just found out that it is not easy to win and to make huge profits. If we talk about forex, then forex market is a huge financial market with international networking. In this huge currency trading market, daily numerous people try their luck to earn money online but only few of them gets success and rest of them gets fail.My personal advice to anyone who wants to make great achievements online is to have a plan of action.

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