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General TradingC
Confluence
Confluence in trading occurs when multiple independent technical indicators, support/resistance levels, or analysis methods align at the same price level or point in time, creating a higher-probability trading signal. Traders seek confluence to increase their confidence in a trade setup.
Example
“The $50 level showed strong confluence with the 200-day moving average, the 61.8% Fibonacci retracement, and a prior swing high all converging at the same price.”