Confluence enhances the probability of successful trades by layering technical, fundamental, and quantitative signals. For example, a technical breakout supported by macroeconomic data and a volatility contraction pattern could be seen as a high-confluence setup. It is widely used in discretionary and systematic trading to filter noise and reduce false signals. Some multi-strategy funds design portfolios by selecting strategies that show confluence across timeframes or asset classes. The term is also central to portfolio construction where diversified alpha sources converge to enhance risk-adjusted returns.