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Confluence

Smart Money Confluence

Cross-references all 33 scanners to find stocks where 4+ bullish (or 2+ bearish) signals fire simultaneously. The highest-conviction setups in the market.

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What is this pattern?

The Smart Money Confluence scanner sits at the pinnacle of the AskLivermore platform, synthesizing the output of every other scanner into a single, high-conviction signal. The concept is simple but extraordinarily powerful: when multiple independent analytical frameworks all point to the same stock at the same time, the probability of a successful trade increases dramatically.

Consider a stock that appears simultaneously in the bull flag scanner, the Minervini trend template scanner, the insider buying tracker, and the RS new high scanner. Each of these scanners uses completely different methodology — chart pattern recognition, trend template verification, SEC filing analysis, and relative strength calculation. The fact that all four arrive at the same conclusion independently is a form of signal amplification that dramatically reduces the likelihood of a false positive.

The scanner examines 25 bullish and 5 bearish scanners across all results. For long setups, a minimum of 3 confluences is required to surface — meaning the stock must appear in at least 3 different bullish scanners. For short setups, 2 confluences suffice given the smaller number of bearish scanners. Each result displays the complete list of active signals with their individual grades, the confluence count, and an overall grade based on the number of confirming signals. Five or more long confluences earn an A+ — these are the highest-conviction setups in the entire platform, representing stocks where virtually every analytical lens confirms the same bullish thesis.

Origin & History

The concept of confluence — multiple independent signals confirming the same thesis — has deep roots in both technical analysis and decision science. In technical analysis, Alexander Elder's Triple Screen trading system (Trading for a Living, 1993) was among the first to formalize the requirement for multi-timeframe and multi-indicator confirmation before entering a trade. In decision science, the Delphi method and ensemble forecasting approaches demonstrate that combining independent assessments produces more accurate predictions than any single method. Hedge funds and proprietary trading firms routinely use multi-factor models that require several independent signals to align before deploying capital — a process they call signal confluence or factor stacking. Our implementation extends this principle across 33 independent scanning methodologies, creating a comprehensive confluence detection system.

Detection Criteria

Our scanner evaluates the following criteria when detecting Smart Money Confluence setups across 5,000+ stocks daily.

Cross-reference across 25 bullish scanners
The system checks each unique ticker against all 25 long-side scanners — chart patterns, fundamental screens, insider activity, RS analysis, and more. Each independent confirmation adds to the confluence count, with 3 being the minimum threshold for inclusion.
Cross-reference across 5 bearish scanners
For short-side confluence, the system checks bear flag, head & shoulders top, parabolic short, Stage 3 distribution, and top finder signals. Because there are fewer bearish scanners, the threshold is lower — 2 confluences suffice for inclusion.
Volume surge type filtering
When checking the volume surge scanner, only bullish-type surges (close in top portion of range) count toward long confluences. This ensures that a neutral or bearish volume event doesn't falsely inflate the long confluence count.
Individual signal grade tracking
Each active signal within a confluence is tracked with its original grade from the individual scanner. This allows traders to assess not just how many signals are active, but how strong each individual confirmation is.
Confluence count grading
The overall grade reflects the conviction level based on the number of independent confirmations. Five or more long confluences earn A+ — these represent stocks where virtually every analytical methodology arrives at the same bullish conclusion, a statistically rare and powerful alignment.

Grading Breakdown

For smart money confluence, an A+ grade on the long side means 6+ different bullish scanner signals firing simultaneously on the same ticker. A requires 5 confluences, B+/B requires 4 minimum. On the short side, A+ requires 4+ bearish confluences, A requires 3, and B+/B requires 2 minimum. This is not a prediction of future price movement — it is a way to prioritize which charts deserve your attention first.

A+
Textbook setup — strong confluence across all criteria. Highest conviction.
A
High-quality setup worth watching closely. Minor criteria may be slightly off.
B+
Decent setup with some reservations. One or two criteria fall short of ideal.
B
Pattern detected but lower conviction. Use as a watchlist candidate, not a trade trigger.

Common Mistakes to Avoid

Treating all confluences equally regardless of signal quality — 5 confluences where all signals are B-grade is less compelling than 3 confluences with A+ grades; check the individual signal grades, not just the count
Assuming confluence guarantees success — even the highest-confluence setups can fail if the broader market turns sharply against them or if the stock has a negative fundamental surprise
Ignoring the timing of individual signals — some signals in the confluence may be stale (detected days or weeks ago) while others are fresh; the most powerful confluences are those where multiple signals emerge within a tight time window

How to Trade This Pattern

Entry

For long confluences, enter using the highest-graded individual signal's entry criteria. For example, if the strongest signal is a VCP with an A+ grade, use the VCP breakout as your entry trigger. The confluence provides the conviction; the individual pattern provides the precise timing.

Stop Loss

Use the tightest risk level among the active signals. If one of the confluence signals is a bull flag, use the flag's lower boundary as your stop. Multiple active signals mean that even if one pattern fails, others may still support the stock.

Price Target

High-confluence setups often produce above-average moves because multiple institutional frameworks are aligned. Use partial profit-taking at standard targets (10-15%) and trail the remainder aggressively using the 10 EMA. The strongest confluence setups (5+) warrant larger position sizes and more patience.

This is educational content only. Not financial advice. Always do your own research and manage risk appropriately.

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AskLivermore scans 5,000+ NASDAQ and NYSE stocks daily · Not financial advice · Past performance does not guarantee future results