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.

Confluence: how many factors make a trade for you? — support and resistance diagram
Price bouncing between support and resistance

What's your count?

  • the factors you require to align
  • how you weight them
  • the trade you took on too little confluence
Confluence: how many factors make a trade for you? — moving average crossover diagram
A fast moving average crossing a slower one

The support and resistance guide and moving averages guide are common confluence sources.

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