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Bloomberg Visual Guide to Candlestick Charting by Michael C. Thomsett

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Confirmation

Confirmation is important aspect of technical analysis, notably when analyzing candlestick formations. It is the observation of separate and independent signals that verify what the candlestick pattern predicts. For example, a candlestick reversal may be confirmed by tests of resistance or support, momentum indicator changes, or moving average-based analysis. Two or more candlestick indicators may occur in proximity, providing very strong confirmation.

Confirmation is the core concept of technical analysis. Candlestick patterns and indicators are valuable additions to other technical signals, either as confirming indicators or as ...

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