Trading
Confluence
When multiple technical factors align at the same price level.
Full Definition
Confluence occurs when multiple technical analysis factors align at the same price level, increasing the probability of that level being significant. Examples include a support level that also coincides with a Fibonacci level, moving average, and trendline. Higher confluence typically means higher probability setups.
Example
A buy entry has confluence: 1) 61.8% Fibonacci level, 2) Previous resistance now support, 3) Order block, 4) 200 EMA. This stacked confluence increases confidence.
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