Glossary › confirmation
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