🚨 CONFLUENCE, CONFLUENCE, CONFLUENCE 🚨

What is confluence? Confluence in trading is the strategy of combining multiple independent technical indicators, chart patterns, or market factors to confirm a single trade signal. By stacking confirmations‼️

We are currently floating 70+ Pts in profit on GBPJPY. How did we use multiple confluences to analyze this trade? Welp… I’m glad you asked 😬

Let’s pretend we are private investigators and bring evidence of questioning which happens to be picture #1 (first pic).

This is the Japanese Yen. The Japanese yen at time of analyzing seen bullish momentum close above 670.0. This price point happens to be a MAJOR QUARTER POINT (MQP). Anything Major has significant reactions and so, because the behavior in the candles were extremely volatile with a candle close above this price point. I immediately went to a pair that I love to trade. GBPJPY.
Pic #2 (middle pic) GBPJPY already had struggles closing above price point 215.500. At the same time the Yen had a bullish momentum close above a major quarter point level. We see GJ close with a volume bearish candle across 2 time frames that are very significant. The 4 hour and 1 hour time frames. These two time frames signaled the same correlation in price and gave me the confidence to want to take this trade.
Pic #3 is when I Do My Danceeeeeeeeeee 🥶. Not only do we have evidence that the trade was taken, but we have strong evidence that this trade COMPLETELY died and GJ my friends… Was simply just caught in the crossfire of our great analysis strategy combining multiple confluences. 😎

Confluence is key when trading. Because we are trading gbpJPY, I capitalized the “JPY” for a reason. It’s the quoted currency where as, the “GBP” is the base currency meaning, we want to use the evidence of the quoted currency to determine what this pair will likely do next. Having this level of insight will allow you as a trader, to build a case, draw in the evidence and determine if it’s worth going to trial 😬.

What are your key takeaways to confluence based on this quick read? Leave a comment below ‼️.

UPDATE: pic #4 @ 10:38am est. We are about to hit our Take profit target of 214.000. All precision NO HESITATION 😎

UPDATE: pic #5 & 6 @ 10:58am price 214.000 Take profit Target hit for 118 pts on GBPJPY. Beautiful execution / trade management. Done for the day! 😎

GOD IS THE GREATEST 🥶

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