By learning to read the price action of a market, we can determine a market’s directional bias as well as trade from reoccurring price patterns or price action setups that reflect changes or continuations in market sentiment. This can be a strong directional movement after a price action signal forms, or it can simply be a rejection of a level followed by a strong directional movement…some significant “event” needs to have occurred at a certain point in the market, we can then consider this an event area or level. The 5 factors of confluence above are just some of the levels that can intersect to form a confluent area in the market, there are also intra-day levels and other factors of confluence that we can watch for, which I discuss in my price action trading course.