Confirmation On A Chart

外汇网2021-06-19 13:59:19 59

An indicator or chart pattern that provides evidence that the initial trading alert in question is indicative of an actual trading opportunity. Traders look to other technical indicators to confirm their expected pdiction so that they can have as many technical factors working in their favor as possible. This increases the probability of making a highly successful trade.

For example, a trader who witnesses a short-term moving average cross above a longer-term moving average would pdict that the upward momentum over the coming weeks is likely to increase. Before this trader decides to place an order for the security he or she may want to look to other indicators as confirmation of the initial pdiction. This chart confirmation is used to increase the conviction of the trader, and it generally becomes more influential when three or more indicators are pdicting the same type of movement.

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