Confluence trade more than one technical analysis methods give the same trade signal. It includes the technical indicator as well with the combination of Patterns, Price action and other charting tools. Originally, the term confluence is used to describe a geographic point where two or more rivers come together to form a single body of water. Traders are using this logic to describe the confluence of multiple trading signals.
BankBaroda weekly chart have a confluence of indicator with support in Candlestick chart as follow:
1. RSI = on Head and Shoulder neckline. 2. RSI above 50 indicates bulls are in power. 3. Simple Moving Average : 20 and 200 moving average creating Golden Cross 4. BankBaroda back on Trendline again indicates Support at 90.00 5. BankBaroda above both moving average 6. BankBaroda back on trendline with confirmation of Bullish Price action. 7. Trend continuation can be seen from Price action chart. 8. Trendline breakout at 66 (buy entry with stop loss 63 ) .
Trade : Buy for Long term - Bullish continuation Entry : 92.5 Today 25 January 2022. Stop loss: 89.00 Target for long term : 100 - 107 - 110 - 120 - 140 - 180 ++++++++
Note : All the trade I initiate do not have stop loss more than 4%
Comment
⋅
Target 1 HIt : 92.5 to 100 Target 2 HIt : 92.5 to 107