Confluence

Confluence
Confluence takes place when various technical indicators offer the similar trading signal. Confluence of the trading signals leadsto profitability and accuracy. For example, this takes place when the resistance and support levels are in line with the extension levels and Fibonacci retracement. Psychological levels, lows and highs and the resistance levels and dynamic support can play the role of attention. When the levels overlap, they give rise to strong support and resistance level which is used as points for entry.