Definition
When several separate reasons to watch a price line up at the same spot, such as the previous day's low, a round number and a moving average all near one level.
The story
One line on a chart is easy to ignore. When three or four different tools point to the same price, traders call it confluence and tend to give that level more attention. It doesn't make the level certain to hold; it means more people are likely watching it.
Why you'll see it
It's a common idea in trading education for deciding which levels matter most.
Connects to
SupportResistanceRound numbersPrevious day high/lowFibonacci retracement
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms