There is a reason why EUR/USD stopped at this point “” Confluence Detector

There is a reason why EUR/USD stopped at this point “” Confluence Detector

The  Technical Confluences Indicator  shows that the recent rise of the EUR/USD sends it to a price were  several technical barriers converge around $1.2330, making it a strong line of resistance. The area is the meeting place of the Fibo 23.6% 1d, SMA50-4h, SMA50-1d, SMA200-1h, SMA 5-1hv, SMA10-1d, BB 15m-Middle-Stdv and more.

A break above this line opens the door to much higher levels  with very few dense clusters on the upside. A notable confluence area is  $1.2412, which is the meeting point of the one week high, Fibo 61.8% 1M, Pivot Point 1d R2 and the Bolinger Band 1d-Upper Stdv.   All in all, these points are relatively weak, and the pair has a lot of room to rise.

Looking down, things are much busier, and any fall will find many cushions on the way down. Below immediate support levels,  $1.2277is a small cluster where the Fibo 23.6% 1M and the Fibo 61.8% 1d meet.

EURUSD confluence area March 22 2018


Confluence Detector

The Confluence Detector finds  exciting opportunities using Technical Confluences.  The TC is a tool to locate and point out those price levels where there is a  congestion of indicators,  moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence  adjacents  price levels. This means that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

Learn more about Technical Confluence

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.