It detects confluence areas by aggregating:

• Volume Profile levels (POC, Value Area, Peaks, Valleys)

• Price Action swings (highs and lows)

• Trend retracement levels

When several of these elements align within a defined price range, the indicator highlights those zones as potential support or resistance.

Indicator Setup

To add the Confluence Identifier:

1. Open the Indicators menu

2. Add Confluence Identifier

3. Click the Settings icon to configure the indicator

Data Settings

Input Data

Defines the data source used for calculations:

1. Volume
   Measures the traded volume at each price level.

2. Orders
   Measures the number of executed orders.

Filter Settings

Filter Min

Applies a minimum threshold to filter out insignificant values.

Filter Max

Applies a maximum threshold.
If set to 0, no maximum filter is applied.

Confluence Settings

Tick Sensitivity 

Defines the price range (in ticks) within which different elements must align to be considered a confluence.

Smaller values = more precise zones
Larger values = broader zones

Minimum Number of Confluences

Specifies how many elements must align to generate a confluence zone.

• Higher values → fewer but stronger zones

• Lower values → more frequent zones

Starting Mode

Defines how the calculation starting point is determined:

1. Zig Zag
   Uses price swings based on Zig Zag logic.

2. Date
   Starts calculations from a specific date.

Start Date

Defines the date from which confluence calculations begin (used when Date mode is selected).

Absolute % of Reversal for Zig Zag Trend

Defines the minimum price reversal required to identify a swing point in the Zig Zag trend.

Number of Swings

Specifies how many swings are considered when determining the calculation start point.

Zig Zag Swing Settings

% Absolute Variation for Zig Zag Inversion

Defines the price reversal percentage required to identify swing highs and lows.

Important note:

• The first Zig Zag is used only to determine the calculation start date and can use a larger percentage.

• The second Zig Zag identifies swings used for confluences and should use a smaller percentage to include minor swings.

Enable Zig Zag Swing

Includes swing highs and lows in the confluence calculation.

Include Swings in the First Half

• Enabled: Includes older (less recent) swing points

• Disabled: Considers only the most recent swings

Example Explanation

In the example shown:

• Only Zig Zag swings are enabled

• Confluences are calculated using price action only

• The gray vertical line marks the calculation start

• Start date is determined using 9 swings with 3% reversal

• Confluence swings use a 1% reversal

• Zones are highlighted when at least 3 swings align within 5 ticks

Green zones represent resistance, red zones represent support.

First / Second / Third Volume By Price (VBP)

You can enable up to three separate Volume By Price profiles.

Enable

Activates the selected Volume Profile.

Profile Settings

Allows configuration of:

• Profile type: Daily, Weekly, Monthly, Composite

• Tick grouping

• Minimum volume for Peaks

• Maximum volume for Valleys

• Additional profile-specific options

Enablements

Choose which VBP elements participate in confluence calculations:

• Point of Control (POC)

• Value Area

• Peaks

• Valleys

• Delta Imbalances

Visual Appearance

Customize:

• Colors

• Line thickness

• Line style

Include by Number

• Enabled: Only a fixed number of recent profiles are considered

• Disabled: All profiles from the calculation start date are used

Number of Profiles

Defines how many profiles are included when the option above is enabled.

Trend Retracement Enables

Enable Retracements

Adds retracement levels from the main swing to confluence calculations:

• 38.2%

• 50%

• 61.8%

• 75%

Exclude Previous Retracements

• Enabled: Only the most recent swing retracements are used

• Disabled: Previous retracements are also included

Developing Settings

Allows you to:

• Display Zig Zag lines

• Customize colors for bullish and bearish swings

This helps visually distinguish market structure directly on the chart.

Support & Resistance Colors

Customize the colors of support and resistance zones based on the number of confluences forming each zone.

Stronger zones (more confluences) can be visually emphasized.

Best Practices & Notes

• As more elements are enabled (multiple VBPs, swings, retracements), it is recommended to:

  • Increase the minimum number of confluences

  • Reduce sensitivity ticks

• This ensures only the most significant price zones are highlighted.

In the example shown:

• Three Volume Profiles (Daily, Weekly, Composite)

• Price swings

• Last swing retracements

• Minimum 5 confluences

• Sensitivity of 3 ticks

For a cleaner chart, you can disable VBP lines and display Volume Profiles using separate indicators.