Confluence is a term used in trading that refers to the coming together of multiple indicators or factors that suggest a higher probability of a particular price movement. It is a confirmation that occurs when multiple technical analysis tools, such as moving averages, chart patterns, and support and resistance levels, all point towards the same market direction.

Confluence can be used to increase the accuracy of a trading strategy by reducing the likelihood of false signals. When multiple indicators align, it can give traders more confidence in the validity of a trade setup. However, it is important to note that confluence is not a guarantee of market direction and traders should always use proper risk management techniques.

For example, if a trader is considering a long position in Bitcoin, they may look for confluence among multiple indicators such as a bullish chart pattern, a bounce off a support level, and a bullish MACD crossover. If all three indicators are suggesting a bullish bias, it can increase the likelihood of a profitable trade.

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Exchanges are platforms that allow users to buy, sell, and trade cryptocurrencies. There are several types of exchanges, including centralized and decentralized exchanges. Centralized exchanges are owned and operated by a single entity and require users to trust the exchange to hold their funds and execute trades. Some of the most popular centralized exchanges include Binance, Coinbase, and Kraken.
Golden Cross
A golden cross is a technical analysis pattern in which a short-term moving average crosses above a long-term moving average. It is a bullish signal and is used by traders to identify potential buying opportunities.
ERC-721 is a standard for non-fungible tokens (NFTs) on the Ethereum blockchain. Unlike ERC-20 tokens, which are interchangeable and have identical values, ERC-721 tokens are unique and non-interchangeable. Each ERC-721 token has a distinct ID and metadata, which can include attributes such as name, description, and image.
Traditional Finance, often abbreviated as TradFi, refers to the conventional financial system that operates within regulated institutions such as banks, brokerage firms, insurance companies, and stock exchanges. It encompasses a wide range of financial activities, including banking services, investment management, asset trading, insurance, and more. Unlike decentralized finance (DeFi), which operates on blockchain and smart contract technology, traditional finance relies on centralized intermediaries and regulatory frameworks.

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