Building Strong Confluence Around Entries

In this trade, the focus wasn’t just on an isolated Renko signal (I am working on a new Renko entry signal and method) — it was about layering multiple structural factors to dramatically improve the quality of the entry and risk management.
This approach gives more context and confidence behind the trigger, and ultimately leads to higher probability setups.



Confluence Breakdown:

  • Macro EMA Structure:

    • Larger timeframe EMAs were clearly sloping down, confirming a bearish trend.

    • Micro EMAs (shorter timeframe) were also breaking new lows, aligning momentum across multiple levels.

  • VWAP Deviation Bands:

    • Price was well above VWAP inside the +1 or +2 deviation zones.

    • Mean reversion logic suggested we were stretched and highly likely to rotate back down toward VWAP.

  • 0DTE Striker Levels:

    • Key options-related liquidity levels (Striker) marked targets below, helping set realistic profit objectives and manage risk-reward.

  • Renko Structure:

    • Renko bars were breaking lows — cleanly confirming micro bearish flow.

  • Room to Target:

    • There was clear room from entry to target, avoiding squeezing into chop or late trend exhaustion.

    • The available "airspace" before the striker level and VWAP added extra reward/risk alignment.

Why This Matters:

  • Not "blindly" trading signals but waiting for multiple elements to align to improve the conditions of our entry model.

  • Risk was far better managed because broader structure (macro EMAs, VWAP context) framed clear invalidation points.

  • Confluence creates conviction: Knowing that EMAs, VWAP deviation, Renko, and liquidity levels all pointed the same way made it easier to trust the entry.

Conclusion:

This wasn't just about the new entry system itself.
It was about creating a full market "story" using structure, bias, mean reversion, liquidity levels, and micro confirmation.
Each additional factor stacked the odds more in favour of the trade, providing better context, risk management, and discipline.

I highly recommend that you checkout the training in the academy for the EMA structure training and OrderBlock / SMC training it will help a lot with context.

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