The power of convergence in the Forex market

What does the concept of convergence or association mean and why is it so important in the Forex market? In this article, I will explain what it means to meet, why it is so important and explain how to integrate it into your current trading strategy to help you put the odds on your side.

What is convergence?

Before going into the details of how convergence will improve your trading, we must first understand what this concept means. The dictionary gives us the following definition.

Encounter: A situation in which two things are combined or occur at the same time.

Thus, the encounter essentially represents the coupling of two or more things at the same time. In Forex trading, we can say that a meeting occurs when two or more workers are combined at the same time on the chart.

Some examples of these things can take the form of a main support level or resistance, muffin lines, a sell or buy signal based on price changes or even just a strong trend. . All of these things can be called convergence factors. In other words, a strong trend line may be one of the factors, while the price-based buy signal is another, and so on.

Now that we have defined the concept of convergence and its application in circulation, let's see why it is so important.

Put the odds in your favor

I think I have the nerve to say that consistent profits are the target of any serious operator in the Forex market. So why are there only a limited number of traders who can reach this level? Everything is based on the use of the concept of convergence. These traders, who can be considered winners, have always managed to find a way to identify and exploit the power of convergence to put the odds on their side.

The possibility of putting probabilities in your favor is the main objective of the commercial world. Try to find a way to do this and again and again you will come up with a way that will make you profitable all the time. For this reason, the combination of different confluence factors has this important effect.

Convergence can be seen as a way to put the odds on your side. In other words, the more important the convergence factors are at a given moment or position, the more the price will likely move in the desired direction.

Put the convergence force into action

This is my favorite because we can shed light on the power of convergence when it is associated with a particular trading position. For starters, suppose we have a strong uptrend in a given market. We all know that trading with the trend, or at least resistance, is always a good idea. Here we must remember that the old wisdom that says, the trend is your friend, is quite correct from my experience.

Convergence Factor # 1 therefore becomes the uptrend.

The second thing we can see is a key level of support that has just returned to the chart. The market may have rebounded since the last summit and is now seeking support at this level.

Meeting Factor 2 # = Main Support Level

With respect to the main support level, the price action has now formed a bullish pin (Pin) candle from this level. The Pin or Bar-Bar candlestick is a strong indicator that the market has reached a peak or a strong bottom and is overturning its destination.

Convergence Factor 3 # = bullish pin candle

Last but not least, we can note that the length of the candle's shadow intersects the exponential muffin lines 10 and 20 that we use as part of our trading strategy. Therefore, the suction lines also appear to provide dynamic support parallel to the main support level.

Convergence factor 4 # = Dynamic support of suction lines

So maybe you got the idea. The list can expand to include many other meeting factors that depend on your trading method. But the main idea we draw from it is that the greater the number of convergence factors we observe in a trading position, the more likely the transaction will evolve in the desired direction.

This idea works both ways. Just as the market position, which is accompanied by a greater number of convergence factors, gives high quality signals, the market position, accompanied by fewer convergence factors, gives signals of inferior quality. Here patience is important and we have the ability to wait.

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