> 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/market-structure-and-rotation/altseason-index/confluences.md). # Confluences Altseason Index Confluences While the Altseason Index is a powerful tool on its own, it is best utilized in confluence with other technical indicators and price action concepts to filter signals and execute high-probability trades. ### 1. Market Structure & Support/Resistance When the Altseason Index drops below 20 (Deep Opportunity), look for the total altcoin market cap (e.g., `TOTAL3` or `OTHERS`) to test major horizontal support levels or higher timeframe order blocks. A bounce from structural support while the index is heavily oversold provides a highly favorable risk-to-reward ratio for long positions. ### 2. Fair Value Gaps (FVG) Combine the Altseason Index with FVG models. If the index signals an extreme undervaluation (under 30) and price drops into a bullish FVG (discount array) on a high timeframe, it often signals smart money accumulation before the next leg up in the altcoin market. ### 3. Trend Indicators & Moving Averages Use trend-following indicators like the 200-day moving average. If the Altseason Index flashes a "Deep Opportunity" signal while the price of your target altcoin remains structurally above its 200 SMA, it suggests a healthy pullback in an overarching bull market—a prime buy-the-dip scenario. ### 4. Bitcoin Dominance (BTC.D) Monitor Bitcoin Dominance alongside the Altseason Index. An Extreme Risk signal (index > 80) combined with BTC.D bouncing off long-term support heavily confirms an impending capital rotation out of altcoins and back into Bitcoin. By waiting for multiple technical factors to align with the Altseason Index, you can avoid premature entries during prolonged downtrends and maximize profits during peak altcoin mania. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.candelacharts.com/investing/market-structure-and-rotation/altseason-index/confluences.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.