Fibonacci Convergence or Confluence

Fibo Machine Pro

Get Instant Access

Take Fibonacci retracements and projections from a number of different lows or highs to find a level where 2 or more retracements/projections are at the same level. This will give a level with a strong possibility of a turning point.

Convergence is when the coincidence of 2 or more Fibonacci price relationships comes together with a relatively tight range.

For example, a Fibonacci convergence is where a 38.2% off one high and 50% off another and a 61.8% off another, converging on the same area of the chart. A Fibonacci extension can converge with a Fibonacci retracement creating a bounce.

For example, a Fibonacci convergence is where a 38.2% off one high and 50% off another and a 61.8% off another, converging on the same area of the chart. A Fibonacci extension can converge with a Fibonacci retracement creating a bounce.

Two Fibonacci retracements have been drawn on the chart above from two different low points. Three cluster points are drawn:

A - where the 61.8% and 32.8% retracements coincide B - wherethe 38.2% and 23.6% retracements coincide C - wherethe 61.8% and 100% retracements coincide.

Example 1.

GBPUSD 30 min chart.

Example 1.

GBPUSD 30 min chart.

In the chart above, we have a classic ABCD pattern where the entry point is at point C, a 76.4% retracement and a Morning Star Candlestick Pattern.

The point C was at 76.4% and not 61.8% (76.4% is popular on the GBPUSD), but by waiting for the candlestick pattern i.e. the Morning Star we found conf rmation of the reversal and a good trade to point D the 161.8% projection.

Note also the point C was dose to a Double Bottom with point E and formed a Higher Low Pattern with point 1

<3BPUSD,H4 1.7333 1.7382 1.7331 1.7378

261.8

A second exit at point E a 261.8% projection whiph also converges with a 161.8% projection

Exit at point D a 161.8% Protection

Exit at point D a 161.8% Protection

Entiy. at C aJ>/L8 % retracement and _ ai Double Bottom and Bull Engulfing Candle Pattern