Technical Confluences Detector


What is the Technical Confluences Detector?

The FXS Technical Confluences Detector is an in-house tool, developed by FXStreet experts, that allows you to identify those price levels where congestion of indicators like moving averages, Fibonacci levels, Pivot Points occurs. Knowing where these congestion points are located is very helpful as it allows the trader to see these areas of support and resistance easily.

This tool is customizable so you can choose the asset selectors and the time frame that are more suitable for your trading operations.

Read more about the Technical Confluences Detector.


Yohay Elam

Bitcoin has reached all-time highs, stocks have followed – is it time for gold to break higher? XAU/USD is, at least, moving above $1,800. Last week's upside move proved indecisive, but this latest surge is more substantial. The precious metal is already valued at $1,805.

Gold Price: Key levels to watch

The Technical Confluences Detector is showing that the precious metal faces resistance at $1,820, which is where the Pivot Point one-month Resistance 1 hits the price.

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What are the Technical Confluences Detector?

HOW DOES IT WORK?

CONFLUENCE OF TECHNICAL LEVELS

This tool assigns a certain "weight" to each indicator according to its class and time range. This "weight" is propagated to adjacent price levels – even if those levels do not contain any indicator – to highlight the influence of the force of attraction generated by the presence of important indicators such as a simple moving average or a Pivot Point level in a daily range. The algorithm's logical structure intensifies the signal's strength in those areas where several indicators converge – so-called technical confluence zones.

HOW TO READ THE CHART?

The tool detects and draws the price levels where indicators are placed, highlighting those levels where several indicators converge simultaneously. The length of each bar indicates the intensity of the resistance or support levels generated by the technical indicators. We have also implemented a color gradient to intensify the bars' tonality where the Technical Confluences Detector finds more resistance to price advance. The white lines represent areas where no technical indicator is detected and where the price can move with ease.

TOOLTIP

You can see which indicators are within each price level by placing the cursor over the bar price level. The explanation uses a code that indicates:

HOW TO USE IT?

With the FXS Technical Confluences Detector tool, you can quickly locate the areas where the price can find a support 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 at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

Key Technical Levels Key Technical Levels