Confluence Education/examples

#1> > > Sep 5, 2005 2:43pm

Confluence means coming together or a joining. when we speak of confluence here we are referring to 2 or more levels of fib retracements and/or pivot levels and/or other indicators. looking for confluence is important because it gives you excellent areas of solid support and resistance. instead of just one fib level or pivot level we look for two or more that happen to line up together. it can also include moving averages that happen to line up with these levels. you should always be aware of areas where confluence exists. they can be entry areas or areas to take partial or total profit on an open position. lets look at some examples.

#2> > > Sep 15, 2005 3:21pm

this is an example on a daily chart. there may very well have been a pivot level here also which only makes it better.

#3> > > Sep 15, 2005 3:31pm

confluence with confirming price action. rifle shots not a shotgun

#4> > > Sep 15, 2005 5:35pm

when you locate confluence just mark the area and remove the fib ret. everytime you come back it will be right there for you. also mark your pivots if they are involved in the confluence.