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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