Confluence

One signal on a chart is an opinion. Three or four independent signals lining up at the same price are closer to a fact, and confluence is the habit of noticing when that happens instead of acting on the first thing that looks promising. What confluence means Confluence is simply multiple, independent signals pointing at the same price or the same trade idea at once, a support level, a trendline, and a Fibonacci retracement all landing within a few points of each other, for instance. None of those three signals is especially strong alone, plenty of trendlines break and plenty of Fibonacci levels get ignored, but three separate reasons for the market to react in the same small area carry more weight together than any of them do apart. ...