![20211223_120634.jpg](https://cdn.steemitimages.com/DQmV5mt3wgBWnfLQL85tr51RJbKAm7jSFUT9Agf2meouEkG/20211223_120634.jpg) Hello Professor @reminiscence01. I have read your post and now, I am doing the homework task given by you. ![3YjRMKgsieLsXiWgm2BURfogkWe5CerTXVyUc6H4gicdRPkc7gcyLY6iicgsHjoXRtr8hfCSNE9w3DMt4SRroFhW5QvZ2219cz1GCNPsT6...c2FD2yBDe3GxH9tVhvMzkLa1Yq8h4xryf334JMmebyKyxNMTAeQA8xjtZjZ5gtkH1vw88CBXrCoi1UfXvMMTLyrd1cW63injRSS5cJ1gEJX6PuBG8tbmWeAVos.gif](https://cdn.steemitimages.com/DQmVxEy78QdVuHRGi9UbZdciQKi64Qkc23ttLWEh2jtdhD5/3YjRMKgsieLsXiWgm2BURfogkWe5CerTXVyUc6H4gicdRPkc7gcyLY6iicgsHjoXRtr8hfCSNE9w3DMt4SRroFhW5QvZ2219cz1GCNPsT6...c2FD2yBDe3GxH9tVhvMzkLa1Yq8h4xryf334JMmebyKyxNMTAeQA8xjtZjZ5gtkH1vw88CBXrCoi1UfXvMMTLyrd1cW63injRSS5cJ1gEJX6PuBG8tbmWeAVos.gif) ###

1. Explain Confluence trading. Explain how a trade setup can be enhanced using confluence trading.

2. Explain the importance of confluence trading in the crypto market?

Explain 2-level and 3-level confirmation confluence trading using any crypto chart.

4. Analyze and Open a demo trade on two crypto asset pairs using confluence trading. The following are expected in this question. a) Identify the trend. b) Explain the strategies/trading tools for your confluence. c) What are the different signals observed on the chart?

![3YjRMKgsieLsXiWgm2BURfogkWe5CerTXVyUc6H4gicdRPkc7gcyLY6iicgsHjoXRtr8hfCSNE9w3DMt4SRroFhW5QvZ2219cz1GCNPsT6...c2FD2yBDe3GxH9tVhvMzkLa1Yq8h4xryf334JMmebyKyxNMTAeQA8xjtZjZ5gtkH1vw88CBXrCoi1UfXvMMTLyrd1cW63injRSS5cJ1gEJX6PuBG8tbmWeAVos.gif](https://cdn.steemitimages.com/DQmVxEy78QdVuHRGi9UbZdciQKi64Qkc23ttLWEh2jtdhD5/3YjRMKgsieLsXiWgm2BURfogkWe5CerTXVyUc6H4gicdRPkc7gcyLY6iicgsHjoXRtr8hfCSNE9w3DMt4SRroFhW5QvZ2219cz1GCNPsT6...c2FD2yBDe3GxH9tVhvMzkLa1Yq8h4xryf334JMmebyKyxNMTAeQA8xjtZjZ5gtkH1vw88CBXrCoi1UfXvMMTLyrd1cW63injRSS5cJ1gEJX6PuBG8tbmWeAVos.gif) I will analyse Crypto asset price charts using Confluence trading here. I will also open a trade using Confluence Trading setup. I will analyse **BTCUSDT** pair using Confluence Trading. I am going to use 3-level confirmation Confluence Trading as It is best for confirming signal more times and It will give confidence in your trade. ____ ![photogrid.photocollagemaker.photoeditor.squarepic_20211223101341251.png](https://cdn.steemitimages.com/DQmP4ekbngjPH6ah3tq6P44qzujNJRyhkZtAuzq9xwqqpEx/photogrid.photocollagemaker.photoeditor.squarepic_20211223101341251.png)^{BTCUSDT pair using Confluence Trading} _____ **(a)** The current trend is Uptrend in 45min price chart of BTCUSDT as price has only moved in upward direction and with use of confluence trading, I will identify the next trend. _____ **(b)** Look at the above image, I have taken price chart of BTCUSDT in which I have used 3 strategies which are **MACD Indicator**, **CCI Indicator** and **MA Indicator**. Look at the MACD indicator, It is crossing the line from above and moving towards below direction which is a sign of bearish move. I have concluded it with the help of only one strategy. So, I will confirm it by using other strategies to confirm that all Strategies have the same confluence. CCI Indicator is moving towards negative zone from postive zone which is a strong sign of bearish move. MA Indicator is now above the price. You can see it by zooming the image. So, Price is below moving average which is a sign of bearish move. So, I confirmed it with the help of 3 strategies and all gave the same confluence. ______ **(c)** With the help of three strategies, I have concluded that the price is going to move in downward direction and I should open a short position here. ![IMG_20211223_105154.jpg](https://cdn.steemitimages.com/DQmeQjNNAJKUoMEK8jFoCXq1fhgKVbMN3sDWxwxtaPqixrH/IMG_20211223_105154.jpg)^{Short position of BTCUSDT} As you can see in the image above, I have short BTCUSDT at price $48790 as concluded from the price chart using Confluence Trading and the price moved according to our expectation. I have marked a 5% profit in this short trade and booked profit by closing this position at price $48304. ![45GhBmKYa8LQ7FKvbgfn8zqd6W2YEX34pMmaoxBszxVcFa4x1AWBforgh5sUwYHo3LCfcKznTsruVZx8k5fsp4wNYAEqPmA5QKKwjyXVTZ...PtAdHMKJWq4k8kHcqg4EWmHHhHdhJgoucMKueoP2W9nGvBjuv7UBb9ctUQXitXA9tUyG35X4ZAGTU7eaH5K8QW6iVj93ELodmkx2SdcAbEPTWFLHMHi53k3G3Q.png](https://cdn.steemitimages.com/DQmZG6rbEsvNB3c1YpMXfsPW4eB1yp9hew3qehKiEfhweZk/45GhBmKYa8LQ7FKvbgfn8zqd6W2YEX34pMmaoxBszxVcFa4x1AWBforgh5sUwYHo3LCfcKznTsruVZx8k5fsp4wNYAEqPmA5QKKwjyXVTZ...PtAdHMKJWq4k8kHcqg4EWmHHhHdhJgoucMKueoP2W9nGvBjuv7UBb9ctUQXitXA9tUyG35X4ZAGTU7eaH5K8QW6iVj93ELodmkx2SdcAbEPTWFLHMHi53k3G3Q.png) Now, I will analyse SXPUSDT pair on the price chart using Confluence Trading. _____ ![photogrid.photocollagemaker.photoeditor.squarepic_20211223101329659.png](https://cdn.steemitimages.com/DQmdSjky6ic6jGffXdA1Gvvrhdj19WhHUbTs5HkNQh2XcfK/photogrid.photocollagemaker.photoeditor.squarepic_20211223101329659.png)^{SXPUSDT pair using Confluence Trading} ____ **(a)** The current trend is downtrend as you can see in the price chart of SXPUSDT that the price is only moving in downward direction. Now, I will identify the next trend using Confluence Trading. _____ **(b)** Look at the above image, I have taken price chart of **SXPUSDT**pair in which I have used 3 strategies which are **MACD Indicator**, **MA Indicator** and **Strong Resistance Level**. Look at the MACD Indicator, It is crossing the line from below direction and moving towards positive direction which is a sign of Bullish move. I will confirm it by using other strategies. MA Indicator is moving below the price which means Price will move in Upward direction. And I have marked a strong Resistance Level and at the marked point, Price has broken that resistance level which is a strong sign of Bullish move. So, I confirmed the signal with the help of 3 strategies and all have the same confluence. ____ **(c)** Through Confluence Trading on price chart of SXPUSDT pair, I have concluded that the price is going to make a bullish move. So, I bought 6.5 amount of SXP on my Binance Exchange at price $1.558 total of $10.12. ![IMG_20211223_110927.jpg](https://cdn.steemitimages.com/DQmbaeJDGodaVPPMkVwAesnbc2Dtd5J4ydq7mGP11dBVTiL/IMG_20211223_110927.jpg)^{Bought SXP at price $1.558} After that, I wait for sometime and the price moved in upward direction as per our expectation. I have sold all my 6.5 SXP at price $1.57 and I received $10.20 means I booked a profit of 0.08$ which is 1% in Spot Trade using Confluence Trading. ![IMG_20211223_115135.jpg](https://cdn.steemitimages.com/DQmYTSNm6DGn1Qz81u3FsYS76oCKRPVKaPqLE9X1DPvHp4x/IMG_20211223_115135.jpg)^{Sold SXP at price $1.57} I booked my profit at price $1.57 but the price continuously moving in upward direction which means our signal was perfect. ![IMG_20211223_115212.jpg](https://cdn.steemitimages.com/DQmQCrXaTCA5utqefnGGGjLqGYofqTpmjBamxeie8unCYy3/IMG_20211223_115212.jpg)^{Price continuously moving in upward direction} As you can see, I have taken position ay $1.558 and it's price is moving in Upward direction and here's Confluence Trading works perfect. So, Confluence Trading gave perfect signal for both crypto asset pairs and I booked profit in both pairs means Confluence Trading is best and very useful for traders. ![3YjRMKgsieLsXiWgm2BURfogkWe5CerTXVyUc6H4gicdRPkc7gcyLY6iicgsHjoXRtr8hfCSNE9w3DMt4SRroFhW5QvZ2219cz1GCNPsT6...c2FD2yBDe3GxH9tVhvMzkLa1Yq8h4xryf334JMmebyKyxNMTAeQA8xjtZjZ5gtkH1vw88CBXrCoi1UfXvMMTLyrd1cW63injRSS5cJ1gEJX6PuBG8tbmWeAVos.gif](https://cdn.steemitimages.com/DQmVxEy78QdVuHRGi9UbZdciQKi64Qkc23ttLWEh2jtdhD5/3YjRMKgsieLsXiWgm2BURfogkWe5CerTXVyUc6H4gicdRPkc7gcyLY6iicgsHjoXRtr8hfCSNE9w3DMt4SRroFhW5QvZ2219cz1GCNPsT6...c2FD2yBDe3GxH9tVhvMzkLa1Yq8h4xryf334JMmebyKyxNMTAeQA8xjtZjZ5gtkH1vw88CBXrCoi1UfXvMMTLyrd1cW63injRSS5cJ1gEJX6PuBG8tbmWeAVos.gif) ### Conclusion ![3YjRMKgsieLsXiWgm2BURfogkWe5CerTXVyUc6H4gicdRPkc7gcyLY6iicgsHjoXRtr8hfCSNE9w3DMt4SRroFhW5QvZ2219cz1GCNPsT6...c2FD2yBDe3GxH9tVhvMzkLa1Yq8h4xryf334JMmebyKyxNMTAeQA8xjtZjZ5gtkH1vw88CBXrCoi1UfXvMMTLyrd1cW63injRSS5cJ1gEJX6PuBG8tbmWeAVos.gif](https://cdn.steemitimages.com/DQmVxEy78QdVuHRGi9UbZdciQKi64Qkc23ttLWEh2jtdhD5/3YjRMKgsieLsXiWgm2BURfogkWe5CerTXVyUc6H4gicdRPkc7gcyLY6iicgsHjoXRtr8hfCSNE9w3DMt4SRroFhW5QvZ2219cz1GCNPsT6...c2FD2yBDe3GxH9tVhvMzkLa1Yq8h4xryf334JMmebyKyxNMTAeQA8xjtZjZ5gtkH1vw88CBXrCoi1UfXvMMTLyrd1cW63injRSS5cJ1gEJX6PuBG8tbmWeAVos.gif) Confluence Trading is very useful for traders as traders can confirm the signal by using multiple strategies which maximizes the fact of getting accurate signal and It also gives confidence to trader in it's trade. From above topics, I have explained about Confluence Trading, it's importance and two types of confluence trading and I have also analyzed two crypto asset pairs and Confluence Trading works perfectly here. I would like to thanks Professor @reminiscence01 for this wonderful lecture as it has very useful topic which should be known by all traders. ____ ***Note - I have taken all images from [TradingView](www.tradingview.com).*** Cc:- @reminiscence01