No matter what method you use to trade the forex market, one thing is for sure, trading with confluence will greatly increase your odds of profiting. Price action setups traded from confluent levels is one of the highest probability trading methods you will find. Price action analysis makes use of a raw price chart with no indicators. To find the most confluent signals we look for areas where price action setups coincide with support or resistance, trend lines, (and) or Fibonacci retracement levels.
Waiting for our price action analysis setups to occur at confluent levels is the most accurate way to trade forex. When we trade forex in this manner we are acting like snipers; patiently waiting for the target to move into our crosshairs and then calmly pulling the trigger to execute our trade. In this manner we greatly increase our winning percentage and more quickly grow our trading account. This is in direct contrast to the way many aspiring forex traders behave; overtrading and randomly entering and exiting trades after their self-discipline falters due to an ineffective method (and) or a lack of self-control. We could compare most traders to a person blindly shooting their rifle in a panic, not hitting the target and then being totally out of ammunition when the perfect setup eventually forms.
The necessity of a simple forex trading method to navigate the turbulent forex market cannot be overstated. When we combine a truly simple yet effective Forex Trading method like price action analysis with confluence of levels we get a deadly combo. The patience needed to wait for well defined price action setups to occur at a solid confluent level is a rare trait indeed. Price action analysis can provide you with the method that will allow you to profit if you have the necessary self-discipline to not over trade and manage your risk effectively. It pays to get a quality education in the art of price action analysis, once you become trained in this trading method you can start to design your own trading plan that makes use of confluent levels to increase the probability of each setup.
Confluence of levels will enhance the probability of any trading method, the problem is most trading methods make use of lagging indicators or ridiculous counting methods that only do more to confuse and frustrate traders than to help them. Price action analysis is the most effective trading strategy that makes use of a naked price chart. The reason is that you are trading off the information the market generates about itself. There are many easily spotted clues to future market direction that are apparent to the person trained to spot specific price pattern setups. Support and resistance, Fibonacci retracements, and trend lines can be utilized to trade the forex market without any further method involved. However, combining these levels with price action analysis is the closest thing to a perfect forex trading method that you will find. The natural rotational movement of FX markets is best unveiled by price action signals formed at confluent levels.
