Confluence Study Guide
Confluence Refers to or more independent signals, indicators, or strategies pointing to the same conclusion, thereby strengthening support for a trading judgment, but it cannot guarantee outcomes or eliminate risk.
Basic Concepts
In technical analysis (TA),Confluence typically refers to combining multiple methods or indicators so that one signal validates another. For example, traders may first observe support and resistance, then check whether moving averages or the Ichimoku Cloud point to similar areas.
How to Understand and Use
Effective Confluence should, as far as possible, combine signals reflecting different market aspects, such as trends, momentum, and key price levels. If multiple signals align, traders may consider the degree of confirmation to be higher; if signals conflict, they can wait for a clearer setup. It is important to note that indicators repeatedly measuring the same phenomenon may create a false sense of agreement.
Original Tutorial
https://www.binance.com/en/academy/glossary/confluence
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