{"slug":"confluence","term":"Confluence","category":"Technical Analysis","definition":"Confluence is multiple independent signals pointing to the same trade at the same level — say a horizontal support, the 200 EMA, and a high-volume zone all sitting together. Each signal alone is weak evidence; stacked together they mark the levels where a setup deserves size and has a clean invalidation point.","street":"One indicator is an opinion; three pointing at the same level is a trade.","depth":["Real confluence means independent evidence: structure (a level that's held before), trend (which side of the 200 EMA price sits on), and positioning or flow (funding, open interest, volume) agreeing at one zone. Two momentum oscillators nodding at each other isn't confluence — RSI and MACD are cousins running similar math, so they count as one vote. Two or three genuinely different votes at one price is where you size up and know exactly where you're wrong.","The trap: confluence-hunting quietly turns into a confirmation machine — stack enough indicators and you can 'confirm' any trade you already fell in love with. Fix it by writing the checklist before you open the chart: which three things must line up, and what invalidates the idea. Then pass on anything scoring two out of three. Confluence should kill most of your trade ideas. If it approves everything, it's not analysis, it's decoration."],"live":{"label":"See the radar's calls and their outcomes","href":"/radar"},"related":["ema","support-resistance","divergence","rsi"]}