Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Join the Facebook community of FBS!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Email tooltip

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area


Confluence in financial markets

Confluence in financial markets

2021-03-18 • Updated

Information is not investment advice

In this article, we will discuss what the term confluence means and why traders should care about it.

What is confluence?

Originally, the word ‘confluence’ means a place where two or more rivers come together to form a single water flow. In Forex, confluence refers to a situation when several technical tools give the same trade signal. Most of the time these are technical indicators, though sometimes they may be price patterns or price action. For this reason, some traders fill their charts with lots of indicators as they want to catch the desired confluence. However, often the result is conflicting signals, which confuses a trader. How to avoid the chart’s overloading? Use two or three indicators, that would be enough!

Types of confluence

There is no strict classification of confluence. You are free to combine any technical tools you want. Only one thing is important: choose indicators that are independent of each other, in other words, not calculated using each other. Otherwise, you would risk finding a fake confluence, which may mislead you. Let’s discuss some good examples of using confluence.

Candlestick pattern & Fibonacci

On the chart below you can observe a typical confluence: a shooting star in combination with the Fibonacci retracement. A shooting star is a candlestick with a long upper shadow and a little lower shadow, which gives a bearish signal. The 61.8% Fibonacci retracement level acts like a resistance, which stops the price from further rising. As a result, the price has reversed from this level and started falling.


Moving average & Fibonacci

Here’s another example: the 200-period moving average coincides with the 50.0% Fibonacci retracement level. After the long rally up, the price bounces off the strong resistance at the intersection of the moving average with the Fibo level and starts falling. 

для типсов 2.png

Bollinger Bands & support and resistance

It’s a good idea to use the combination of Bollinger Bands (BB) with support and resistance levels. The BB indicator consists of 3 lines – a middle band and two outer ones. 

When the price reaches the upper band, the asset is considered overbought. And if the upper line of BB coincides with the resistance level, the way down is likely to happen.

When a price approaches the lower band, the asset is trading at a relatively low price and is considered oversold. And if the lower line of BB coincides with the support level, the way up is likely to happen.

для типсов 3.png

Watch the video!


A confluence is a great tool for every trader. It’s based on the classic Forex principle: don’t rely only on one indicator, but at the same time, don’t overload your chart with dozens of indicators. This is essential in Forex to avoid fakeouts and unexpected reversals. In fact, most trading strategies are built on the concept of confluence. If you have not created yet your strategy, this is how you can start building it now from scratch! 



Choose your payment system

Learn more


Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later