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Every trading tutorial says 'look for confluence' but none explain what that actually means in practice. How do I recognize true confluence versus just seeing patterns that aren't there?
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Great question! Confluence happens when multiple independent analyses point to the same trading opportunity - it's like getting second and third opinions before making a decision. The guide on what confluence is gives this perfect example : Imagine Bitcoin approaches a historically strong support level while the Fear & Greed Index hits extreme fear and exchange reserves suddenly drop. That alignment of technical, sentiment, and on-chain data creates high-probability confluence. The key is using unrelated indicators - three moving averages don't count!