…it means a number of things converging at the same time. “Confuence” perfectly illustrates what went on with crude oil futures today. We were day trading the bounces, because crude is tehnically in an uptrend after a 5 wave downtrend on the hourly chart. We were using prorietary Gann time indicators, but this one could have been traded with price alone. The 9189 level marked the indicator of several price indicators. First, the big green line is the simple 100 day moving average. It works because big institutional traders have it in their black boxes that trade on the hourly time frame.
Next, you have 3 major Fibonacci levels converging on the same price. One is a few pennies off, but strong enough. The thin blue lines on the chart above trace the Fibonacci pullback levels from the top to the bottom they are respectively drawn from. This shows you that even when you are day trading smaller time frames, like the 5 or 2 minutes, you must be aware of where the big guys who trade the bigger time frames find support and resistance on a chart from a larger time frame.
DISCLAIMER: The examples above are given as demonstrations of technical analysis and are therefore hypothetical and not actual trades. They do not represent actual account results nor include the entirety of all predictions we make.