Homework Summary [Beginner's Course] - Crypto Academy / S5W6 - Confluence Trading.

_{Image edited in Canva}

Season greetings to you all 🎄, I hope we are all enjoying the amazing moments of the festive season. We have concluded the 6th week of Season 5 in the Steemit Crypto Academy. The week ran from 00:00 UTC 19th December 2021 to 11:59 UTC 25th December 2021. The activities were successful ranging from the lesson to the homework tasks. I wish to thank everyone who took part in this week's lesson and also the homework task. Special thanks to my partner professor @sachin08 for his support and assistance.

In this week's lesson, we covered Confluence Trading and also how we can strengthen a trade setup using it. Confluence trading entails the use of multiple technical analysis tools to confirm a trade setup. When you have 2 or 3 technical analysis tools giving you the trading signal (buy or sell), it gives you the confidence to execute the trade and also increases the chances of the trade becoming a success.

I will like to point out a few things I noticed from the submissions on Confluence Trading. Most users failed to understand the concept of confluence trading. This can be seen in the use of moving averages and the RSI indicators by the majority of the users.

For price to be considered bullish on the moving average, the moving average line needs to be below the price. The moving average is a trend-following indicator and it helps to identify the current trend in the market. Looking the moving average along will guide you to the trading signals you need from other technical analysis tools. Remember, we follow the trend.

When we must have confirmed that price is bullish on the moving average, a break below the moving average signifies a trend reversal from bullish to bearish. Looking at the chart below, we can see that the RSI was in Oversold region which signals a trend reversal to the upside. As a confluence trader, you do not just take a buy entry based on the RSI. Proper confirmation is needed from other technical analysis tools to confirm this signal from the RSI.

From the chart above, we can see that the RSI was in an overbought region signaling a trend reversal to the downside. Also, we can at this point that the price is trading above the moving average and this is not in line with the signal from the RSI. All you have to do as a confluence trader is to be patient to confirm this signal from the RSI on the moving average. And for this to happen, price needs to break below the moving average to confirm the trend reversal. This is only when you can look for a selling opportunity.

Most users went ahead to execute a trade based on the RSI indicator when there's no confluence between the indicator and other technical analysis tools. That is a poor way of trading as this will reduce the chances of your trades being successful.

---

At the end of the week, we had 79 entries. The task distribution is as follows:

• 71 Valid Entries
• 8 Invalid Entries
• 0 Plagiarised / Spun Content.

This can be further shown in the bar chart below.

Grade Statistics

Reference

• Plagiarized content refer to users who copied someone else’s idea without referencing the original source.
• Below average refer to grades below 5.
• Average refers to grades within 5 and 5.9
• Good refers to grades within 6 and 8.9
• Excellent refer to grades within 9 and 10.
• Invalid entries are for posts from users who are not eligible to perform the task. Also, late entries are for participants who submitted before the scheduled time which is 11:59 pm UTC, on Saturday 25th December 2021. Participants who do not meet the requirements for #club5050 are also in this category.

The chart above shows the overall performance of the homework task. 30% of the participants scored above grade 9 while 55% scored between 6 & 8.9. Also, 4% of the participants scored an average score of 5 while 1% scored below average score. There was no case of plagiarism detected. 10% of the homework tasks submitted were disqualified from users who do not meet #club5050 requirements and also users who are powering down.

The chart below shows the grade dispersion from the homework task with an average score of 7.9.

---

Top 3 Homework Task

Below are the top three homework task with an outstanding performance.

Username	Homework link
@abell24	Homework post link
@feyol55	Homework post link
@sir-lionel	Homework post link

Conclusion

The performance from the homework task is great with an average score of 7.9 and zero plagiarism/spun content detected. We have studied confluence trading and I believe the information we have received from the lesson will be implemented in our trading plan. Remember, always invest how much you can lose in the crypto market and make use of proper risk management.

Merry Christmas 🎄 to you all.

@reminiscence01.

Cc:
@steemitblog