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Technical Confluence

Technical confluence describes a situation where several different forms of technical analysis identify the same general area as potentially important.

Why it matters to you

A level becomes more interesting when independent information overlaps. For example: previous resistance, 200 day moving average, VWAP, high volume area, and a recent liquidity sweep could all occur around a similar price. Confluence increases the amount of supporting context. It does not guarantee the trade will work.

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