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. Charles Dow recognized this concept and used the confirmation of two different price averages before he recognized a legitimate market signal. In the days when only chart ...
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