Trade Confluence Assistant
Last updated
Last updated
The Confluence Dashboard is a tool designed to help you quickly assess the current market conditions and make informed trading decisions based on a variety of technical indicators. It compiles multiple signals into an easy-to-read format, helping you decide whether the market is favoring long trades (buy), short trades (sell), or is in a neutral state. Below is an explanation of how the dashboard works and how you can use it in your trading strategy.
1. Trade Bias & RSI Status
The first two rows of the dashboard show you the High-Timeframe (HTF) and Low-Timeframe (LTF) Trade Bias. These biases are calculated based on moving averages:
Long (green) indicates the price is above the moving average, suggesting that price is much more likely to continue higher and we should look for pullbacks to get in long.
Short (red) indicates the price is below the moving average, suggesting that price is much more likely to continue lower and we should look for spikes in price to get in short.
Additionally, you will see the current RSI (Relative Strength Index) value:
If RSI is above 70, the market is considered Overbought (red), signaling a potential selling opportunity.
If RSI is below 30, the market is Oversold (green), indicating a possible buying opportunity.
If RSI is between 30 and 70, the market is Neutral (gray).
2. Confluence Signals
The core of the dashboard is the Confluence Signals section. This part of the tool checks a variety of conditions to help you decide whether the market is at a good area for trades. Each row checks if a specific condition was met within the last 5 bars and gives you one of three signals:
"Long" (green) – Conditions favor a potential buy opportunity.
"Short" (red) – Conditions favor a potential sell opportunity.
"Neutral" (gray) – No clear signal for either direction.
Here are the main conditions the dashboard checks:
Divergence: Identifies if the price is diverging from 10 different technical tools, which often signals potential reversals.
Fair Value Gap (FVG): Checks for price imbalances in the market. These are often zones where price might reverse or find resistance/support.
VWAP Deviation: Looks at how far the price is from the Volume Weighted Average Price (VWAP), which helps identify if the price is extended and due for a pullback.
Volume Exhaustion: Detects if there’s exhaustion in volume, which can indicate the end of a trend or a reversal.
Williams %R: Measures market momentum, helping to identify overbought or oversold conditions, signaling potential reversal points.
Swing Failure Pattern (SFP): A pattern where the price briefly moves above/below a key level before reversing, signaling market traps.
Stochastic Signal: Monitors overbought or oversold conditions using the stochastic oscillator, helping identify potential market tops and bottoms.
Liquidity Grabs (LG): Detects areas where liquidity is swept (price breaks key levels and reverses), often leading to sharp reversals.
Price Exhaustion: Identifies exhaustion candles, signaling that a trend may be ending and a reversal could occur.
Fear & Greed Zones: Tracks emotional extremes in the market (fear or greed), which can indicate possible reversals.
Mean Reversion: Uses a blend of range and price analysis to measure volatility and detect when price may revert to its mean.
KDE RSI: Combines Kernel Density Estimation with RSI levels to highlight potentials market reversals.
Dying Momentum: Identifies when market momentum is weakening, signaling potential trend reversals.
3. Visual Alerts
In addition to the table, the script plots circles on the chart to visually highlight when conditions trigger together:
Green circles indicate a set number of long confluence options have triggered together.
Red circles indicate a set number of short confluence options have triggered together
These circles appear at the price level where the signal occurs, helping you visually identify key trading opportunities in real-time.
4. Using Confluence for Trades
The Confirmation Dashboard doesn't rely on just one signal. It looks at multiple indicators together to provide a confluence of signals, giving you more confidence in your trades. You can set the dashboard to trigger an alert when a specific number of conditions are met. For example, you might want a long alert only if at least five "Long" conditions are active. This helps reduce false signals and increases the probability of successful trade opportunities.
5. Setting Thresholds for Alerts
You can control how many green (favorable) conditions must be met before a trade alert is triggered. This is customizable through a threshold you set in the settings. For instance, you can specify that at least 3 conditions must be green before considering a long position, or at least 4 conditions must be red before considering a short.
6. How the Dashboard Helps You
The dashboard is a powerful tool that simplifies complex market data into a clear and actionable format. It:
Saves time by aggregating multiple indicators into one easy-to-read table.
Improves decision-making by showing you whether the market favors long or short trades based on confluence.
Reduces uncertainty by providing visual and table-based confirmations, allowing you to trade with confidence.
By using this dashboard, you can avoid relying on just one indicator and instead make better trading decisions based on multiple conditions coming together, increasing the accuracy and success rate of your trades.
