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Using Confluence Technique to Harvest Profit

The Confluence technique is a common strategy used by professional traders but often remains a secret to beginners. Simply put, Confluence refers to conditions where there are situations that support a specific condition, such as the occurrence of a trend along with moving average crossovers, and so on.

Below are the steps to determine Confluence conditions as trading opportunities:

  1. Trend is Your Friend: Use the basic rule "the trend is your friend" as the foundation of the Confluence technique. Ensure you identify trend conditions, such as an uptrend, as the basis of this technique.
  2. Retracement and Key Support Areas: Observe when prices experience retracement from recent highs to key support areas. This is a crucial part of the Confluence strategy.
  3. Candlestick Pattern Support: Note if there are candlestick patterns that support, such as the formation of a pin bar, to reinforce key support positions. Pin bars are often considered to have fairly reliable probabilities.
  4. Dynamic Support from MA Indicator: Pay attention to whether there is support from the moving average (MA) indicator that confirms the support condition. This helps solidify the Confluence technique.
  5. Open Positions According to Conditions and Situations: Once all conditions and situations occur, you are ready to open buy or sell positions according to the trend direction and market conditions.

The Importance of Confluence:

While the occurrence of many situations simultaneously in Confluence conditions does not guarantee certain profits, this technique helps you to be more organized in trading. By using several situations as conditions to wait for Confluence, you will be more trained to be patient and wait for the right moment.

Think of your trading like a casino business. Although it doesn't always make a profit every day, in the end, the business always makes a profit. Similarly, with trading, it's not about making a profit all the time, but more about seeing results in the long run.

By using the Confluence technique, you can improve your trading performance and become more skilled in making the right trading decisions. Remember to always practice and continue to develop your strategy.


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