Confluence

Confluence indicators can be set as required confirmation for trend signals to be fired.

What is Confluence?

Confluence allows Secondary Factions or technical indicators to be set as trend confirmation factors. The Pro Trader will only fire trend signals if the Primary Faction and Confluence indicators agree on trend direction. When confluence indicators disagree, the system will enter a Technical Ranging condition. In this scenario, a 'Ranging' signal will appear and chart candles will appear yellow. If the configuration is loaded in the Lendal Pro Trader, the Calculations Table will also appear yellow.

Optimizing Factions for Confluence Strategies

To maximize the power of this feature, each confluence indicator should be optimized to market conditions individually. The following steps provide an overview of this process. See Isolating Factions in the Strategy Optimization section for more detail.

Example:

To use Ichimoku Direction (Wizards) as a confluence factor with Vikings, implement the following steps:

1. Load Wizards as the primary Faction.
2. Select Price Action (Ichimoku) as the strategy in the Wizards settings.
3. Ensure all boxes in the Confluence and Super Trends sections are unchecked in order to isolate the Price Action (Ichimoku) algorithm.
4. Optimize Ichimoku settings until the Strategy Tester Panel shows maximum Net Profit and minimal Max Drawdown.
5. Switch the primary Faction to Vikings.
6. Optimize Vikings settings until the Strategy Tester Panel shows maximum Net Profit and minimal Max Drawdown.
7. Select Require Ichimoku Direction in the Confluence settings.

For further details, see the Strategy Optimization section.

Require Strict [Faction] Confluence and Super Trends Comparison

• Require Strict [Vikings]
• Require Strict [Spartans]
• Required Strict [Mongols]
• Required Strict [Rangers]

Secondary factions can be used as confirmation factors in either the Confluence or Super Trends sections. The Require Strict [Faction] setting in the Confluence section requires the secondary faction to be in strict agreement with the primary Faction for trend signals to fire. Whereas, using a faction as Super Trend confirmation allows more slippage in the trend agreement. Each approach will influence trend identification and backtest data differently.

Rangers Confluence Factors

All RSI confluence is based on the Required RSI Score (Confluence) setting within Rangers.

• Require Trending RSI

• Require RSI Breakout

• Require RSI Score

Wizards Confluence Factors

• Require VWAP Direction
• Require Impulse Direction
• Require Impulse Direction
• Require Strong Impulse Trend
• Require Ichimoku Direction
• Require Time Price Opportunity
• Require Trending TSI
• Require Breakout TSI
• Require TSI Direction
• Require Bollinger Direction
• Require Bollinger Breakout
• Required EMA Cross
• Require VPVR POC Cross
• Require SNR Direction
• Require SNR Signal

Vikings Confluence Factors

Confluence factors based on acceleration are based on the Vikings algorithm.

• Require Trending Acceleration

• Require Breakout Acceleration

Volume Confluence

• Require Volume Growth