Confluence
Several independent reasons pointing the same way
What it is
When separate pieces of evidence, such as a level, a trend, or a volume shift, line up at the same price.
What it may suggest
Independent agreement is stronger than any single signal, and is roughly what a confidence score is trying to express.
Where it fails
Only if the inputs are genuinely independent. Three moving averages are one input wearing three hats, and stacking them creates false confidence.
Also called confirmation.
More concepts
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