Confluence

When several things point the same way.

A level, a moving average, and volume all in one place var(--dia-185fa5) 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.

More in Charts

• Entries and Exits: Where the whole thing is supposed to pay off.
• Risk and Position Size: The part that decides whether you survive.
• What Technical Analysis Cannot Do: The honest chapter.
• What Technical Analysis Is For: Fundamentals pick the business. Technicals pick the moment.
• The Anatomy of a Candle: Four numbers, one picture.
• Single-Candle Signals: Doji, hammer, shooting star, marubozu.
• Multi-Candle Patterns: Engulfing, harami, stars, three soldiers.
• Volume, the Confirmation: How much conviction was behind the move.
• Support and Resistance: Prices the market remembers.
• Trend and Trendlines: Higher highs, lower lows.
• Breakouts and Fakeouts: The move that matters, and the one that traps you.
• Chart Patterns: Head and shoulders, triangles, flags.

All chapters in Learn NEPSE Investing