In finance and trading, confluence refers to the alignment of multiple strategies or signals that confirm the same outcome. In investing, it often means combining different approaches or asset classes, leading to portfolio diversification.

In technical analysis (TA), confluence occurs when several indicators point to the same price level or trend, strengthening the reliability of a trading decision. For example, if support/resistance, moving averages, and Ichimoku Cloud all highlight the same reversal zone, traders gain more confidence to enter or exit a position.

Confluence helps reduce risk by confirming signals through multiple data points, making it a key principle in advanced trading strategies.