Confluence Zones

Confluence zones can be used to gauge strength of market direction. In the image below the upper and lower bands are your confluence zones. When the bane is in dark green, it indicates strong confluence and hence chances of marketing moving upwards is high. Similarly when the lower band turns dark red it indicates chances of market going down. When the band is in lighter green or ligther red it indicates a weak confluence. A more riskier trader can initiate trades at weaker signals to reap more reward if market does indeed move in the direction. A risk averese trader can wait for string signaks to initiate trades.