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Monthly lowWeekly lowEMA 1501.10001.11001.12001.13001.09701.10301.10001234
Illustration — not market data.EMA 150MonthlyWeekly

Step by step

How to read it

  1. 1A monthly low.
  2. 2A weekly low, just above it.
  3. 3A round number, right in between.
  4. 4Three reasons inside one narrow zone. Price reached it and turned.

Watch out

Common mistake

Counting reasons that are far apart. Confluence means one narrow zone, not a wide band of anything.

In one line

Definition

Several reasons in the same place — for example a monthly low, a weekly low and a round number inside one narrow zone.

Check yourself

Check yourself

Which of these is confluence?