The Confluent

One of the reasons for watching multiple possible scenarios is to identify potential confluent. As there are more setups projecting a similar price target, a greater chance the price will converge to that target level. The SP500 Emini Futures displayed a confluent at the 1900.75 level in the overnight session. Three different setups were projecting a possible price target near 1900.75. The first setup is from a longer time frame Fibonacci retracement, second setup is a Fibonacce retracement from a shorter time frame, and the third setup is the Fibonacci extension via a possible bull flag measured move. The confluent from these setups does not guarantee the 1900.75 level will be hit, it simply imply a higher probability that the price will reach this level. And this time, the odds played out and the price tagged the 1900.75 before it pulled back.

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