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Trading glossary · candles

confirmation

Waiting for the next candle to agree with a signal before acting, like checking twice before crossing a road.

The fuller meaning

Evidence after a signal that supports it, typically the next candle closing in the signal's direction, such as a lower close after a shooting star. Waiting filters out some failures but costs a worse entry and misses some moves, a trade-off each plan decides in advance.

confirmation, also called confirmation candle.

Related words

bearish · bearish engulfing · bearish harami · bearish marubozu · body · bullish · bullish engulfing · bullish harami · bullish marubozu · candlestick