Confluence harnesses the collective strength of various signals to enhance the precision and reliability of trading decisions, reducing the occurrence of false signals and aiding in the identification of optimal entry and exit points.
In this analysis, I use the 'Predict Beta' indicator to forecast key levels, facilitating the identification of significant confluence areas by connecting previous key levels to the current level. According to the chart, the price currently hovers within the low 50% zone, potentially serving as a support area. Anticipated movement upward is expected following the completion of a divergence cycle (not shown). The shifting of the 50% moving average (in yellow) to the low 50% zone could signal an upward price movement. If this occurs, I will place a market limit order at 60750, which corresponds to the confluence line. Another way to place an order is to wait for the price to close above the 50% moving average.
I also used an additional indicator called 'AR Forecast Scatterplot' by Steverteves to visualize how the price may behave around these key levels and confluence areas. The plot is showing that the price is likely to reach the upper 50% level (red). However, this will only happen when the 50% moving average already shifted to the low or middle 50% level.
(Predict beta is still under testing and it is not yet published in tradingview)
/please DYOR/trade at your own risk
In this analysis, I use the 'Predict Beta' indicator to forecast key levels, facilitating the identification of significant confluence areas by connecting previous key levels to the current level. According to the chart, the price currently hovers within the low 50% zone, potentially serving as a support area. Anticipated movement upward is expected following the completion of a divergence cycle (not shown). The shifting of the 50% moving average (in yellow) to the low 50% zone could signal an upward price movement. If this occurs, I will place a market limit order at 60750, which corresponds to the confluence line. Another way to place an order is to wait for the price to close above the 50% moving average.
I also used an additional indicator called 'AR Forecast Scatterplot' by Steverteves to visualize how the price may behave around these key levels and confluence areas. The plot is showing that the price is likely to reach the upper 50% level (red). However, this will only happen when the 50% moving average already shifted to the low or middle 50% level.
(Predict beta is still under testing and it is not yet published in tradingview)
/please DYOR/trade at your own risk