> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/investing/macro-and-liquidity/quantitative-equity-model/confluences.md).

# Confluences

Quantitative Equity Model Confluences

The Quantitative Equity Model serves as a top-down macro filter that pairs perfectly with bottom-up technical strategies.

* **Trend Following & Momentum**: Use the model to dictate position sizing. When the model suggests 100% allocation, take full-sized trend-following entries. When it suggests 20%, drastically reduce your sizing or widen stops.
* **Mean Reversion**: During severe drawdowns, the model will flash crisis warnings (Buy Zones). Look for traditional mean-reversion signals (like RSI divergence or lower Bollinger Band touches) within these Buy Zones to identify structural market bottoms.
* **Sector Rotation**: Pair the model's macro allocation with Sector ETF Flows. If the model signals a high equity allocation, rotate capital specifically into the sectors showing the strongest institutional inflows.


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