# Trading confluences explained

Learn how to stack trading confluences like liquidity, fair value gaps, inverse FVGs and break of structure to filter noise and improve entries.

Source: https://kasuds629.shop/trading-confluences-explained/ · based on the channel [TJR](https://www.youtube.com/channel/UCGHBUXjDCeiIXNdKR0HUZnA) · Video: [Learn Every Trading Confluence In 18 Minutes](https://www.youtube.com/watch?v=TYbpk7WogHI) · 2026-10-18

![Trading confluences explained](https://kasuds629.shop/trading-confluences-explained/trading-confluences-explained.webp)

## Key takeaways

- Confluence means multiple independent signals pointing to the same trade idea, increasing probability.
- Key confluences from TJR's breakdown include liquidity, fair value gaps (FVG), inverse FVGs, equal highs/lows, and break of structure (BOS).
- Liquidity pools form above equal highs and below equal lows, often acting as magnets for price.
- A fair value gap is a three-candle imbalance that can act as support or resistance; an inverse FVG flips its role after being violated.
- Stacking 2–3 confluences (e.g., liquidity sweep + FVG + BOS) is more reliable than trading any single signal alone.

Trading confluences are multiple independent technical signals that align to support the same trade idea, and stacking them is how you filter out low-probability setups. In TJR's video "Learn Every Trading Confluence In 18 Minutes", the focus is on five core concepts — liquidity, fair value gaps (FVG), inverse FVGs, equal highs/lows, and break of structure (BOS) — and how to combine them rather than trading any one in isolation. For a structured walkthrough of these ideas, TJR offers a free blueprint at [go.tjrtrades.com/blueprint-nviugv1](https://go.tjrtrades.com/blueprint-nviugv1).

## What trading confluences actually are and why they matter

A confluence is simply a point where two or more unrelated signals suggest the same direction or level, increasing the odds that the market reacts there. Traders use confluences to avoid over-relying on a single indicator or pattern, which often produces false signals in isolation. The logic is probabilistic: each additional confluence doesn't guarantee success, but it can improve the risk-reward profile of a setup by filtering out weaker opportunities. TJR's breakdown emphasizes that knowing which confluences add value to your specific strategy is more important than blindly stacking every signal you find.

## Liquidity: the invisible magnet for price

Liquidity refers to clusters of resting orders — typically stop-losses and pending orders — that market participants place around obvious levels like equal highs, equal lows, and round numbers. Price often moves toward these pools because large players need liquidity to fill their own positions. In practice, a liquidity pool above equal highs acts as a magnet, and a sweep of that pool can precede a reversal. TJR highlights liquidity as the first confluence because it explains why price moves to certain levels before reacting. When you see price approaching a clear liquidity pool, it's a signal to watch for a reaction rather than to enter blindly.

## Fair value gaps and inverse fair value gaps

A fair value gap (FVG) is a three-candle formation where the middle candle's range leaves an imbalance — a gap between the wicks of the first and third candles — that price often returns to fill. Traders treat the FVG as a zone of interest: if price retraces into it, it can act as support or resistance depending on the trend. An inverse FVG (IFVG) occurs when price violates an FVG and then retests it from the other side, flipping its role — a former support FVG becomes resistance, and vice versa. TJR presents both as confluences because they help pinpoint entry zones with defined risk. The key is to wait for price to actually react at the zone rather than assuming the zone will hold.

## Equal highs and lows: where stop-hunts happen

Equal highs and equal lows are levels where price has repeatedly failed to break through, creating a visual line that attracts stop-loss orders. These levels are prime targets for liquidity grabs because traders often place stops just beyond them. When price approaches equal highs, for example, a sudden spike above them that quickly reverses can signal a liquidity sweep and a potential short opportunity. TJR includes equal highs/lows as a confluence because they highlight where the market may seek liquidity before making a real move. Combining this with an FVG or a BOS can turn a simple level into a high-probability setup.

## Break of structure: confirming the shift

Break of structure (BOS) is a price action signal that the current trend direction has changed, typically identified when price breaks a recent swing high in an uptrend or a swing low in a downtrend. A valid BOS often precedes a continuation or reversal and can be used as confirmation after a liquidity sweep or an FVG retest. TJR treats BOS as a confluence because it adds momentum confirmation to a level-based setup. For example, if price sweeps liquidity below a low, then breaks structure to the upside, that BOS can validate a long entry at a nearby FVG. The important nuance is that BOS should be measured on the timeframe you're trading, not on a lower timeframe that produces noise.

## How to stack confluences without overcomplicating your trading

Stacking confluences works best when you limit yourself to two or three complementary signals rather than trying to combine everything. A practical approach is to start with a liquidity level or an FVG as your zone of interest, then wait for a BOS or an IFVG to confirm the trade. For instance, a setup might involve: price sweeping equal lows (liquidity), then forming a bullish FVG, followed by a BOS above a recent swing high. Each element adds a layer of confirmation, but you still need a clear invalidation point for risk management. TJR stresses that confluences are tools for filtering, not a guarantee — the market can always do the unexpected.

## Common questions and misconceptions about confluences

Many traders ask whether they need to use all five confluences at once; the answer is no — quality over quantity matters. Another common concern is that confluences seem to work in hindsight but fail in live markets, which usually comes down to forcing setups that aren't there. A frequent mistake is identifying an FVG or liquidity level on a very low timeframe, where noise creates false signals. Finally, some traders believe confluences eliminate the need for discipline and risk management, but TJR's video and the community feedback both highlight that consistency and self-control are the real drivers of long-term results.

## Useful links

- [TJR's blueprint for becoming a full-time profitable trader](https://go.tjrtrades.com/blueprint-nviugv1)
- [Indicators TJR uses daily](https://go.tjrtrades.com/indicators-6qf6zb4)
- [Enter the funded account raffle](https://form.tjrtrades.com/funded-contest)
- [10% off Alpha Futures funded accounts](https://app.alpha-futures.com/signup/TJR/)
- [40% off Lucid Trading](https://lucidtrading.com/ref/TJR/)

## Final thoughts

Confluences are not a magic formula, but they provide a structured way to evaluate trades and avoid random entries. TJR's breakdown of liquidity, FVGs, inverse FVGs, equal highs/lows, and BOS gives you a solid toolkit to build your own checklist. The key is to practice identifying these signals in real time and to combine only the ones that fit your strategy. For a deeper dive into TJR's system, check out the [blueprint](https://go.tjrtrades.com/blueprint-nviugv1) and start building your confluence checklist today.

## Questions & answers

**Do I need to use all five confluences from TJR's video at the same time?**

No, using all five at once is unrealistic and can lead to analysis paralysis. TJR emphasizes that the key is knowing which confluences add value to your specific strategy. Most traders do well with two or three complementary signals, such as a liquidity sweep combined with an FVG and a BOS.

**How do I distinguish a real fair value gap from noise?**

A valid FVG should appear on a timeframe you actually trade and show a clear imbalance between the first and third candle's wicks. Avoid marking every small gap on low timeframes, as that leads to false signals. Wait for price to return to the zone and show a reaction before treating it as a confluence.

**What is the difference between a break of structure and a liquidity sweep?**

A liquidity sweep is a quick move beyond a key level (like equal highs) that triggers stops and then reverses, while a break of structure is a decisive close beyond a swing point that suggests a trend shift. They often occur together: a sweep can precede a BOS, giving you a sequence to watch for.

**Can confluences guarantee a winning trade?**

No, confluences only improve the probability of a setup working, but they cannot eliminate risk. The market is unpredictable, and even strong confluence setups fail. That's why risk management and discipline — as many experienced traders point out — are just as important as the signals themselves.