Confirmation
Extra evidence that a signal is real before you act on it, such as a candle close beyond a level or a…
In plain English
Extra evidence that a signal is real before you act on it, such as a candle close beyond a level or a second indicator agreeing.
Confirmation is a second witness. A pattern or signal alone can be noise; traders wait for something to back it up, like a close above resistance rather than just a poke, or a momentum indicator agreeing with price.
It filters out some false signals, at the cost of entering later and at a worse price. Every trader picks their own balance. In back-office language, a trade confirmation is also the record that confirms a deal's details.
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