Nial Fuller

NIAL FULLER Nial Fuller
Professional Trader, Author & Coach

How To Develop A Forex Trading Plan & Trading With Confluence

How to Develop a Forex trading plan  –  Trading Confluence; one of the most effective methods to trade forex with high probability.

Video Synopsis -How to develop a forex trading plan – trading confluence 5-29-2009

In the above forex education video I introduce traders to the concept of forex trading using confluence.

Confluence is simply an area where two factors meet and confirm one another; it’s the “weight of evidence” argument. Confluence = an area on a chart where 2 or more trading signals come together at a common point.

When we have a horizontal line on a chart and an uptrend line or a moving average, and the two meet at the same point, this would be an example of confluence.

The beautiful thing is when we are trading we can put into our trading plan conditions that must be met for confluence. Condition 1, do we have confluence of two factors to support the direction we are trading? An example of this would be a moving average cross over to the upside and an uptrend line that aligns at the same point as a moving average, if we then buy a pullback, or go long on weakness in the uptrend at this intersection point of signals, we are then trading at confluence.

A practical example from the video above: Crossover of moving averages to the upside = momentum to upside, also look at the horizontal line, the area where the horizontal line and MA meet is confluence. The 3rd variable is the price action confirmation signal, in his video the price action signal was a pin bar. This is called 3 variable confluence and it’s a very high probability way to trade the forex market.

Entering at “confluence” is the most important factor of any forex trading strategy.

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Nial Fuller

About Nial Fuller

is a Professional Trader, Investor & Author who is considered ‘The Authority’ on Price Action Trading. His blog is read by over 200,000+ followers and he has taught 25,000+ students since 2008. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's Professional Trading Course here.
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  1. Bongani

    Awesome!

    Reply
  2. rajesh vishwakarma

    Nice video on good feedback as well..thanks

    Reply
  3. pitborirak

    very good, clear, and understanding.

    Reply
  4. Sheila

    Great video Nial, thanks for sharing your abundant knowledge.

    Reply
  5. Ellis Russell

    This is awesome!

    Reply
  6. George

    Thanks Nial.

    Reply
  7. Larry Hoover

    Hi Nial,

    Given the importance of Confuluence could you provide us with more details (videos or written materials) on same?
    THX Larry

    Reply
  8. bob morley

    I know you are pro-price action and I am learning to think that way as well. I fully believe that price can do anything it wants WITHOUT the permission of RSI or Stoch or CCI etc.

    BUT

    Don’t you think Ichimoku has many of these confluences built in? I have been putting a lot of weight on where price is in relation to the cloud for a filter and trying to trade only with price action in that direction. Price action rather than line crosses being my trigger.

    Reply
    • nial

      I like the idea of confluence in any trading method, its the simply the idea of using multiple reasons to enter a trade which align together to give one common trading signal.

      Reply
  9. anand devkota

    Thank you sir

    Reply
  10. tom power

    however what is frightening about this point is that there was a doji (narrow range open=close) bar after an uptrend a sure reversal yet it pulled back and kept going

    Reply
    • nial

      You have traditional candlestick patterns confused with my methods. This is not a doji in my eyes, its a pin bar bullish reversal. Lower prices where clearly rejected. A doji is not valid if it forms in this vecinity of the chart anyway.
      Please check out my course for more clarification.

      Reply

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