Price Action Confluence

WaveTracker illuminates potential key volatility points in the market. Key volatility points are quite often points in the market that have numerous tie-ins of market structure or geometry. Some examples of tie-ins to look for with AWE patterns include:

Fibonacci Retracements and Extentions
Every professional trader worth his salt knows that Fibonacci retracements and extentions of waves occur every day in the markets. They occur on all timeframe charts, one minute 1M, 5M, 15M, 60M, daily, and weekly charts. We are not concerned with why they occur, only that they do occur and that they are significant.

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The key Fibonacci retracement levels are:

.382, .500, .618 and .786 (.707 for larger waves)

The key Fibonacci extention levels are:

1.272, 1.414, 2.000 and 2.618

Support and Resistance levels

Support and resistance levels develop continually in markets at all degrees of trend. Quite often, when a level is penetrated, support will turn into resistance (if level penetrated to the downside) or resistance will turn into support (if level penetrated to the upside).

Hook Patterns
A hook pattern is one where the market penetrates a support/resistance point and then briefly ‘hooks’ back to the support/resistance point prior to resuming the move in the direction of the break.