L4.3 — Confluence: When Multiple Structural Factors Align
Confluence is the alignment of two or more independent structural factors at the same price area. A level that is both a previous major swing high and a 50% retracement of the last trend leg and is sitting at the daily structural support zone has higher confluence than a level that is only one of those things. Higher confluence does not guarantee a reaction — but it increases the probability that the level is significant enough to produce one.
Structural confluence factors worth tracking: previous swing highs/lows, broken structure levels that have flipped (resistance-turned-support), session highs and lows, weekly/monthly open levels, and round number psychological levels. The more of these that stack at the same zone, the stronger the case for watching that zone carefully.
The danger of the confluence concept is over-engineering: adding more and more factors until every level looks like a trade. The discipline is to identify two or three clean confluences and stop. A zone with three strong confluences is better than a zone with six weak ones.
Get notified when new lessons and content are published.