Confluence

When several things point the same way.

A level, a moving average, and volume all in one place Price is at somewhere the market has previously defended. A trend context The higher timeframe is not fighting you. A momentum read RSI or MACD is not screaming the opposite. Volume Someone actually showed up. Beware false confluence. RSI, stochastic, CCI and Williams %R agreeing is not four pieces of evidence, it is one piece of evidence computed four ways. Genuine confluence means tools that measure different things, not different tools measuring the same thing.

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: Charts.