Confluence
Definition of 'Confluence'The combination of multiple strategies and ideas into one complete strategy. Confluence occurs when two separate ideas/strategies are used together to form an investment strategy that is in line with an investor's risk profile and goals. This term can also be used when doing technical analysis, by looking at charts and developing levels where different indicators are combined to help identify possible opportunities. |
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Investopedia explains 'Confluence'Confluence can be seen when brokers combine professionally managed third-party accounts with a value investing account. Brokers have used professionally managed accounts in the past, and they now have the option to research and invest in stocks they are confident in while still allowing professionals to manage a portion of the account. This new type of portfolio management is a confluence of two strategies. |
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