Confluence Trade

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Confluence Trade



Confluence trading is a strategy where a trader enters a trade only when multiple technical signals or indicators confirm the same direction in the same price area. For example, if a stock touches a support level, the RSI shows it's oversold, and a bullish candlestick pattern forms at the same time – that’s a strong confluence zone. Such setups increase the probability of success, help avoid fake signals, reduce risk, and build trader confidence. So instead of relying on a single indicator, confluence trading is considered a safer and smarter way to trade.

 



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