The Technical Confluences Indicator that the recent fall of the EUR/USD was powerful as it breached a critical cluster of support lines at $1.2360. This opens the door to dropping to much lower levels as support lines are few and far between.
The $1.2360 region is the congestion of the Simple Moving Average 50-1h, the SMA200-15m, the Fibonacci 23.6% one-week, the Fibonacci 38.2% one-month, the Bolinger Band 15m-Upper (Stdv. 2.2), the Fibo 38.2% one-day, the SMA10-4h, and the SMA5 one day.
The TCI (Technical Confluences Indicator) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence
The tool detects and draws those price levels in which the confluences of indicators and key levels are recorded. Blank lines represent areas where the price can move without technical resistance. The levels with the highest assigned weight of resistance are drawn with the darker colour, this colour being degraded as the influence of the maximum levels decreases.
You can see which indicators are within each price level by placing the cursor on the level. The explanation uses a code that indicates:
With the TCI tool, you can easily locate areas where the price can find a support zone or resistance zone and make trading decisions. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points each time. If you are a medium- and long-term trader, this tool will allow you to know in advance the price levels in which a medium / long-term trend can stop your travel and rest, where to undo positions or
The length of the bars of the TCI tool is determined by the weight assigned by the algorithm at each price level. The longest bar in a confluence indicates the level of the price segment where the highest level of confluence of the segment is located. In case of similar levels in the same price range, the maximum length will be assigned to that bar with more accumulated indicators.
