Technical Analysis: The Complete Resource for Financial Market Technicians

Chapter 18. Confirmation

Chapter Objectives

By the end of this chapter, you should be familiar with

• The methods of plotting volume information on charts

• Traditional general rules for interpreting volume statistics

• The major indexes and oscillators that are designed to use volume information as confirmation

• The concept of open interest and how it might be used for confirmation

• The concept of momentum

• The major indexes and oscillators that use price data

The odds increase that a technical signal is correct if there is confirmation from another unrelated indicator. In the days when only chart patterns were available as a means of interpreting price action, the technical analyst used volume as the confirming indicator. Sometimes, depending on the calculating ...