QUESTION:1

Explain Confluence trading. Explain how a trade setup can be enhanced using confluence trading.
Explain the importance of confluence trading in the crypto market?

Confluence trading basically means to merge different trading strategies, technical analysis, fundamental analysis and sentimental analysis, thus traders usually use this terminology of confluence trading by making trading more realistic, reliable and scalable. Since every trader need better efficiency towards their trade hence by using this confluence trading.

Since confluence trading can admire your trade more accurate because the volatility issue in crypto market is high and therefore traders ain't capture the perfect trend reversal in market, though confluence trading will hybrid the indicator and strategies ultimately provide you better learning of market and their volatility.

Howbiet the essence of confluence Indicator assure and describe the market behaviour in advance level. You might know the silent strategy where you have one more weapon to attack, thus same here when your indicator missed the trend the second silent indicator helps you to maintain your scalability in market with fruitful profitable results.

Do explore the enhancement of confluence trading with the help market chart

As our basis regarding technical indicators are now refine upgrade and boost up so, every one is now able to analyse with multiple trading indicators. Hence Trade setup can be enhanced by using confluence trading approach where good decision making with your trades can be observed and enhance. This might boost the trader confidence and inflate him good trader in market. Trade setup can enhance good decision making and netter turnover, it will build your confidence and trust towards crypto volatility. Since trade setup basically design your manner and behaviour of strategy by confluence multiple strategy and technical tools which we will thoroughly discuss in our below chart.

Here above i am using 5 mins price action using sxp/usdt, you can check how beautifully all strategies are running and decoding the market in a simple and convenient way. First you can see the strategical approach i used by ** higher high and lower lows** at 1.52$ the price strated this structure and continuous formation of this higher high has been examined. Held there were some lagging points can be seen if you know the this strategy becuase it ain't satisfied certain areas in its best way. Second indicator MACD has clearly reduced the risk and compliance my trade with more appropriate way. Held am using confluence trading i also used RSIfor my last check and maintain my risk management more confidencial as you can see both rsi and macd managed by risk management and purify my trades towards golden route🚀

QUESTION:2

Explain the importance of confluence trading in the crypto market?

As our talk about confluence trading particularly based on the importance of of this strategy in our trades. Let's discuss the importance of this confluence trading mechanism with bullet points.

Healthy and fruitful results:

Main thing which became the admiration of traders is profit by applying confluence trading you can enjoy and benefit with maximum accurate trading with profitable outcomes. Suppose you are applying RSI, MACD, BOLLINGER BANDS and multiple strategy using with these Indicators can capture each and every situation in market. Held trend reversal can be happen at any moment and by using past and predetermined strategies you can acquire and shape your trade with better result.

Scalability and connectivity towards market:

Held by applying confluence trading traders can explore better area of in and out of the market. You can maintain your stop loss areas by using confluence trading and it will help you to determine positive and negative areas of market. Hence by using confluence trading strategy can surely make your trades scalable and connect you with the market sentiment.

Fakeouts filter:

Hence confluence trading is the accumulation of multiple strategy and technical tools. As our debate is basically to identify better trade position in market to acquire profitable results, thus if you avoid from false signals though it can provide your better opportunity in market. Fakeouts is very rare in market although experience traders get liquidate thats why to orevent from losses they apply confluence tool trading strategy.

Perfect risk management:

By the way no technical indicator can enhance 100% surety that you might get positve results but if there is higher risk higher loss can be seen, since by using confluence trading if one indicator seems lag might the second or third indicator can point out the golden opportunity, thus if Indicators are show continuous lagging formation might strategy and market behaviour can be used to depict the sentiments price volatility. Hence you engage your trade with multiple risk controller and minimum chances of loss can observed.

Yet i Uses single chart to manage confluence trading setup and importance towards market. So you can use and check each and obtained fruitful results from market.

Since every Indicator having its own representation and behaviour since for confluence trading you need to settle and accumulate your confluence trading tool with good indicator and in which have perfect expertise and knowledge. Although confluence strategy is overall an ERP of market just for a resemblance i used this term.

QUESTION:3

Explain 2-level and 3-level confirmation confluence trading using any crypto chart.

The confluence trading basically is accumulation of multiple tools and strategies, since some traders want there chart neat and clean thats why the formation of 2 and 3 level confirmation came here to visualise chart with convenience in for those traders. Held i am already being using this strategy about a year ago though i ain't feel difficult to use multiple confluence trading tools.

Lets explore each of them in detail held you guys might know what they actually are;

2 level confirmation tools

Here maximum 2 Indicators or strategies are used prevent loss and inaccuracies in trading. Experience traders might use this becuase they have good practice over there suitable indicator or strategies.

Above chart shows us SXP/USDT pair with 5 mins timeframe, as you can see i used maximum 2 standards of technical analysis tools known as RSI,MACD. At 1.63$ the price started and bullish trend has been seen till 1.50$ a good intraday opportunity can be seen. Using macd indicator i will judge my rsi movement and reliability, in macd Indicator you can see the golden opportunity has been enlightened where it pulls the price and rsi crosses the support area of 40 to 50 range and ultimately contrast with the 40-90 zone acting as bullish area and overbought and price is hitting its maximum range and macd also fulfills the requirements.

3 level confirmation tools

Here maximum 3 Indicators or strategies are used prevent loss and inaccuracies in trading. This strategy i feels less expert traders might use becuase they are very sensitive towards thier position in market hence they use at least up to 3 tools to identify the market structure.

Here same chart i used as above but the strategy has been advance by using confluence Indicator thrice. As you can see as above i used rsi and macd but here i am maintaining my trade more reliable by using the strategy known as higher high and higher low, to be honest if you use this strategy with these Technical indicator you will able to analyse the perfect market sentiment with minimal risk and you will able compliance with market more fruitfully as you can see the higher higher is the main strategy in my chart and rsi and macd obeying it correspondingly with perfect way.

QUESTION:4

Analyze and Open a demo trade on two crypto asset pairs using confluence trading. The following are expected in this question.

a) Identify the trend.

I will use SXP/USDT pair to maintain my trend cycle and bright my trade towards more reliability by using confluence trading setup. Here am using RSI and MACD with higher high formation. The chart below you can see this management style i applied.

The trend that depicts from confluence trading is bullish and might in further trade it can give us profit lets explore the next part.

b) Explain the strategies/trading tools for your confluence.

The confluence trading setup is established by using RSI MACD HIGHER HIGH AND HIGHER LOWS as you can see in image below. Whilst the each Indicator is making a perfect compliance with strategical approach as you can see. The price booms from 1.54$ and hits up to my live price which is 1.639$ a good profitable margin has been observed by using confluence trading. Here the calling of breakout might held you can see where these strategies worked in perfect way and might my confluence trading can officially be observed practically. Now lets move towards next part and place the order.

c) What are the different signals observed on the chart?

Here i will place my order regarding the signal i extracted, though buy order is 1.621$ and i wait until my trade and confluence trading react towards market and after 10 mins approximately a intraday profit has been acquired at the rate of 1.640$ i sold my asset you can see a good profit and successful confluence has been depicts.

Here above waiting for the trend cycle to restore the lower high position again, ultimately after 10min the price shoots and indicator also reflected the profitability area, Here you can also see the breakout is actual and i maintain my profitable position in market. Hence my reliability towards this confluence trading mechanism has been developed with more confidence.

Here above you cans see my demo trades which i used to trade against market.

conclusion:

Confluence trading is one of the most efficient and effective source which work as a ERP for traders. Hence its examined the whole market behaviour by using multiple strategy and technical indicators.

Professor depicts us confluence trading by different modes and set-up, by using 2 level and 3 level confluence trading though its up to trader who use any of its mean trading for extracting the fruitful results from market. So i discussed each question with overall capability and professor also taught the lesson in his best manner.

Thanks professor @reminiscence01 for delivering such a knowledgeable lecture.

Regards
@salemumar5