Confirmation

Confirmation is the term used when a technical analysis indicator(s) is used to "confirm" a predicted future price movement.

Confirmation

Confirmation is the term used when a technical analysis indicator(s) is used to "confirm" a predicted future price movement.


Interpretation of Confirmation

Confirmation is usually required when a particular indicator or candlestick pattern is considered a weak indicator.  For example, the Downside Tasuki Gap shown below should be used in conjunction with some form of confirmation, either a gap down opening or a bearish candle following the pattern.

Illustration of Confirmation with the Downside Tasuki Gap candlestick pattern
Illustration of Confirmation with the Downside Tasuki Gap candlestick pattern

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