Confluence
The overlap of two or more independent technical signals at the same price level, strengthening the case for a trade.
Confluence is the principle that a price level gains significance when multiple, independent factors agree on its importance. A Fibonacci 61.8% retracement sitting at a prior swing low, on top of a rising 200-day moving average, with a high-volume node from Volume Profile — that is confluence.
No single indicator is reliable in isolation. Confluence filters low-probability setups and improves the risk/reward profile of entries. The more unrelated tools that converge, the more traders are likely watching the same zone, creating self-fulfilling interest.
