Confluence: how many factors make a trade for you?
Confluence — several independent signals agreeing — raises confidence but also raises the bar, and too many requirements mean never trading. The sweet spot differs per strategy.
What's your count?
- the factors you require to align
- how you weight them
- the trade you took on too little confluence
The support and resistance guide and moving averages guide are common confluence sources.
Background: Support and resistance: how traders mark price levels
Support and resistance are the most widely used ideas in chart reading. How to find levels, why they work as zones, and what happens when they break.
What is support and resistance in forex?
Support is a price area where falling prices have tended to stop, and resistance is an area where rising prices have tended to stall, often because many orders cluster there.
What happens when support breaks?
The price often falls further, and the old support level frequently acts as resistance if the price comes back up to it.
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