What does the concept of convergence or association mean, and why it is so important in the Forex market? In this article I will discuss what it means to meet and why it is so important to explain how to integrate it into your current trading strategy to help you put the odds in your favor.
What is convergence?
Before we go into the details of how convergence can improve your trading, we will first have to understand what this concept means. The dictionary gives us the following definition.
Encounter: is the state in which two things are combined or occur at the same time.
Thus, the encounter essentially represents the coupling of two or more things together at the same time. In Forex trading, we can claim that a meeting occurs when two or more workers are combined at the same time on the chart.
Some examples of these things may come in the form of a major support or resistance level, muffin lines, a sell or buy signal based on price action or even simply having a strong trend. All these things can be called convergence factors. In other words, a strong trend line can be one factor, while a price-based buy signal is another and so on.
Now that we have defined the concept of convergence and how Bitcoin Code Scam can be applied in circulation, let’s discuss why it is so important.
Put the odds in your favor
I think I have the nerve to say that continuous profits are the target of any serious trader in the Forex market. So why are there only a limited number of traders who can reach this level? It is all based on the use of the concept of convergence. These traders, who can be counted as winners, have consistently been able to find a way to identify and harness the convergence force in a way that puts the odds in their favor.
The ability to put odds in your favor is the main objective in the trading world. Try to find a way to do it and again and again you will come to a way that will make you profitable continuously. For this reason, the combination of different convergence factors has this important effect.
Convergence can be seen as a way to make the odds in your favor. In other words, the greater the convergence factors at any given time or position, the more likely the price will move in the intended direction.
Put the convergence force into action
This is my favorite part because it enables us to shed light on the power of convergence when linked to a particular trading position. To start, let’s assume that we have a strong bullish trend 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.
So the convergence factor # 1 becomes the strong uptrend trend.
The second thing that we can see is a key support level just back on the chart. The market may have rebounded from the last high and is now looking for support at this level.
Meeting Factor 2 # = Main Support Level
With all respect for the main support level, price action has now formed a bullish pin candlestick (Pin) from this level. The Pin or Bar-Bar candlestick is a strong indicator that the market has reached a strong top or bottom and is reversing its destination.
Convergence factor 3 # = bullish pin candle
Last but not least, we can notice that the length of the candle candle shadow intersects with the 10 and 20 exponential muffin lines that we use as part of our trading strategy. Therefore, the muffing lines also appear to provide dynamic support in parallel to the main support level.
Convergence factor 4 # = Dynamic support of muffing lines
So maybe you got the idea. The list may expand to include many other meeting factors that will depend on The Bitcoin Code trading method you are using. But the main idea that we draw from all this is that the greater the number of convergence factors we observe in a given trading position, the more likely the transaction will move in the intended direction.
This idea works in both directions. Just as the trading position, which is accompanied by a greater number of convergence factors, gives high quality signals, the trading position, which is accompanied by fewer convergence factors, gives lower quality signals. Here, patience is important and we have the ability to wait until we see the opportunity to trade with four or five factors rather than just two or three.
It is also important to keep in mind that while the concept of convergence helps us to put odds in our favor, it does not in any way mean that a trading opportunity of four or five convergence factors can never fail. Instead you might have to focus on the broader picture. Be aware that if you wait patiently for good trading opportunities, your account will begin to grow in the weeks, months, or even years to come. The process of becoming a successful Forex trader is closer to the concept of a marathon rather than a quick enemy.
Just like in a casino where you do not expect to win each time, you should also not expect to win every deal regardless of the number of meeting factors available. As the casino knows that it will achieve the end of the year strong profits because the possibilities are stacked in his favor, so never start thinking like him by starting to use the concept of convergence to make the odds in your favor.