Forex glossary
Confluence (Multiple Signals)
Confluence means multiple analytical criteria agree near the same zone or decision. For example, prior support may coincide with a Fibonacci retracement. Criteria can share the same input data, so counting them does not establish independence or a higher success probability.
Illustrative example
How does it work in practice?
Assume prior support at 1.0950 coincides with the 50% retracement of a 1.0900–1.1000 move. These two criteria show confluence; the next trade's outcome still depends on its rules and execution.
A case to work through
Three readings from one price history
Hypothetically, price is above EMA, MACD is positive and RSI is 60 on the same timeframe.
- All three tools process price history; their agreement may repeat the same information.
- Separate the count of satisfied conditions from evidence of independence and measured effectiveness.
What follows? Record the three criteria and their shared data source.
Example boundary: Without testing, this combination cannot be assigned a specific success probability.
Check shared data
Text description of the diagram
- Criteria list: Record conditions before assessing agreement.
- Tool inputs: Identify tools sharing the same price history.
- Independence assessment: Do not treat condition count as proof of independence.
A useful distinction
Confluence (Multiple Signals) / Moving Average (MA)
Confluence combines several conditions; a moving average is one tool that may contribute a condition.
Check your understanding
Identify repeated information in a signal combination.
Show the answer and explanation
Three conditions agree, but independence is unestablished
Their shared price input limits that interpretation.
Oscillators without mixed scales
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Read the fuller explanation
Related terms
Sources and documentation
- StockCharts – support and resistance
Reaction zones, break criteria and possible role reversal of levels.
Document read: - TradingView – Fibonacci retracements
Two-point anchors and percentage retracement levels; level calculations do not establish outcomes.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.