If I'm picturing this correctly the cars coming down off of the hill have the merge. *Technically* they need to be sure to merge properly with you- the traffic with right of way *BUT* dead and right is not the way to be....
It sounds like a dangerous area that you will always have to be very careful in. Traffic laws totally depend on where you live, but around here bicycles are vehicles - we have all the same rights as cars, so in that situation the car would still be obligated to merge properly with the bicycle - that said way too many people drive their cars quite numbly and they will likely not see you, so be very careful in that situation. Personally I'd probably take the center of the straight lane, watch the merge lane very carefully, signal and move to the right as soon as it was safe. I'd also be diligent about makings sure merging cars could see me - make eye contact if possible, etc.



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When you are taking the lane and preparing to move over to the right AFTER the merge lane, stick your right arm out straight to the side and don't be afraid to wave it a few inches. To be clear, begin signaling as you approach the merge lane. The idea of a signal (turn signals on cars as well) is to tell people what you are about to do, not what you are currently doing. They don't need a warning signal to tell them what they are already observing. The bright blue color and hand motion will get people's attention, and the outstretched hand is a pretty obvious signal that you want to move to the right. You could go by the law and use your left arm to signal a right turn, but I've heard some pretty good points that many drivers are oblivious to the meaning of arm signals. That outstretched arm serves two purposes, so use that instead.