Confluence occurs when several technical indicators give the same trade signal. Confluence of trade signals could lead to greater accuracy and profitability.

For instance, this happens when support and resistance levels are closely in line with Fibonacci retracement and extension levels. Psychological levels, previous highs and lows, and dynamic support and resistance levels (such as moving averages or Bollinger bands) can also act as areas of interest. When these levels coincide, they form stronger support or resistance levels, which could be used as entry points or take profit levels.

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