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Lesson 6: Confluence Trading

Lesson 6: Confluence Trading

Why Indicators Alone Fail & How Professionals Combine Factors

What You’ll Learn

  • What confluence really means in trading
  • Why single indicators give false confidence
  • How professionals stack confirmations
  • How to avoid indicator overload
🧠 Confluence is not about adding more tools — it’s about aligning logic.

What Is Confluence Trading?

Confluence trading means taking trades only when multiple independent factors point to the same idea.

Why Indicators Alone Fail

  • Indicators lag price
  • They give signals everywhere
  • They ignore market context
📉 RSI oversold + strong downtrend = trap
📈 MACD cross + resistance = fake signal

Core Confluence Elements

  • Market Structure
  • Key Levels
  • Liquidity Context
  • HTF Bias
  • Candle Behavior

Golden Rule of Confluence

👉 If removing one factor doesn’t invalidate the trade, it’s probably not real confluence.

Lesson 6 Summary

  • Indicators alone are not an edge
  • Confluence = aligned logic
  • Context beats signals

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