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Confirmation

USDCHF Breaking Down Channel and Buying OpportunityH4 time frame. Structure: After the price fell to the support of 0.91000, there was an upward move that broke the previous downtrend channel. Waiting for the price to appear retest signals and bullish confirmation patterns outside the downtrend channel, you can find buying opportunities. The profit target is the 0.92800 price area. ----------------------------------------------------------------------------------------------- Wish you all have a good trading day!
Long
by tradafx
4 Types of Trading Confirmations"Wait for this confirmation!" "Look for this confirmation!" When I first began my trading journey, these are phrases that I kept seeing get thrown around and had no clue what it meant! What am I supposed to be looking for? What do these confirmations exactly mean? It quickly began to get frustrating and confusing... Then eventually, things started to click one piece after another. Confirmations are a fundamental part of your trading and must be fully understood if you want to be successful in this game. So, what is a confirmation? Well, it depends on many different scenarios, but in this post I will talk about 4 of the most common forms of confirmations with examples! 1️⃣ Price Action When analysing many different instruments whether that is forex currencies, crypto projects or even stocks. You will often see when searching for trading opportunities that there are various confirmations that price will give clues about on the chart that we can trade from. Price action & candlestick patterns are one of the strongest form of confluences as far as confirmations in trading go. They can be accurate reflections of the current market sentiment and gives you clues of what price is trying to communicate with you. Making them very reliable when used in the right hands of course. Different types of price action confirmations such as doji's, pin bars, double top/bottoms & engulfing candlesticks have been proven by history time & time again to be a reliable method of identifying and predicting future market movements and is a major part of my technical analysis. But, is it a good habit to instantly place a trade as soon as we see one of these confirmations? Short answer, NO! I wish it could be that simple... Trading with only one price action confluence will soon bring inconsistencies into your results and will negatively impact your overall success rate. Instead, we need multiple confluences layered on top of one another to give us the best chance of predicting where price will head next. 2️⃣ Indicators Whether you're purely a price action trader or an indicator heavy trader. From simple moving averages to complex computer algorithms, indicators play a big role in the trading industry. Being 100% objective and removing all psychological aspects through providing real numbers, figures and data. They can be extremely beneficial to certain traders when it comes to carrying out their technical analysis. For many traders, the various signals from indicators are considered to be accurate and reliable information. However, all indicators share one negative thing in common and that is that they are all lagging . Meaning the data provided is not a live representation since it uses previous price action to pull its data and is unable to account for what is happening in the market in the right here, right now. Often resulting in traders missing out on the big power moves, getting into positions too late or executing trades with bad risk:reward setups. Not to mention the potential for many traders to rely on indicators too much and begin to lose their own edge in the market (imagine a double edged sword if you will). 3️⃣ Fundamentals Which are figures deriving from news events such as in an economic calendar, news & tweets etc. Actual fundamental news can become your best confirmation tool. However, the main obstacle right here is the promptness, validity and reliability of the data that you get. The information shouldn't be delayed and it must be objectively true. The search for such a source is by itself is a very time-consuming and labor-intensive business not even mentioning its potential costs. And that is not all. Knowing how to make sense of that data, its proper perception, and understanding requires a solid economical and financial background and experience. At the end of the day, becoming an expert in fundamental analysis, the trader can easily sort the trading zones and trade only the ones that are confirmed by a decent fundamental trigger. 4️⃣ Key Levels Us retail traders unfortunately don't control the market. There is an average of $5 trillion flowing in and out of the foreign exchange market every single day! And the majority of this trading volume comes from the big institutional players such as banks & hedge funds etc. Therefore, it's important to know where these big players are buying/selling & why... When analysing you pairs, you'll often see that price will naturally be magnetised to specific key levels. For example, key whole round figures that end in 0's & 50's such as 1.5000 or 1.5500. These are called psychological levels which the institutional market participants like to trade around purely for ease of mind. These levels on various pairs have stayed the same for decades and for many years in the future and is one important form of a key level. Trading these key levels will allow you to find great liquidity zones, rejection areas and break + retest setups.
Education
by NimmoCapital
Don't wait too long for "CONFIRMATION"!​Hi Guys A popular concept in the world of trading, especially among technical traders and chartists is to wait for confirmation before entering a trade. This means you have a Signal, for example, a price action pattern and now you wait for the markets to confirm that pattern before you enter. The idea, of course, is to filter out bad trades this way and to gain confidence before entering the trade. But that confidence might come at a very high price in the long run. The problem with waiting for the market to confirm your trading idea is that this "Confirmation" often already is your profit! In other words, the Signal has worked and you would have been paid to take the risk and trade it. And that's what you get paid for as a trader, you try to anticipate a price move you believe is going to happen before everyone else does. Please notice that this is true despite your trading style. You might hear statements like „I just follow the markets, I don't try to anticipate what's going to happen." (usually, these come from traders following some kind of trend following approach). But what they really mean is that instead of trying to get into a trade early anticipating the markets to reverse direction, they get in late anticipating that the markets will move even further in the direction it has already been moving. Of course nothing wrong with that, but in either case, traders anticipate a future price move they want to profit from and it's important to be aware of that fact. Another example is trading a specific support/resistance level. Sure the risk to buy into a support level while the market is in free fall is risky. But that's precisely why these trades often offer you great profit potential. In case the trade works out, you'll get paid for the risk you took. But again…once you see that huge reversal price bar on your chart that bounced nicely off that support level - you probably already missed the opportunity. You now know that you've been right. That really was a support level and market participants bought again at that price. Because of that price moved up and that's why you now see that huge reversal bar. But that move is over now…and those who took the risk and bought at the level are now taking their profits - hopefully, you're not the one buying from them now. I could come up with many more examples like waiting for an indicator to confirm a trade etc, but the point to consider is that whenever you wait for confirmation you give up a significant amount of potential profits. And more often than not, these potential profits cost more than a couple of losing trades you might filter out waiting for confirmation. Your job here is to find a good compromise between getting in too early due to a Signal coming from market noise and getting in too late due to a Signal that misses most of the opportunity. The Ambush trading method, for example, is an extreme case, it gets into trades again the ongoing short-term trend all the time. But that's precisely the idea behind it, trying to anticipate where that short-term trend is likely to end. Sounds risky? Well, looking at the long-term results it's actually a lot riskier to be on the other side of these trades ;) DO YOU BELIEVE CONFIRMATION?
COINBASE:BTCUSDEducation
by seyed_mehdi
Wait for a buying opportunity with EURAUDH2 time frame. Structure: The descending channel has been broken. The key level of the descending channel at 1.55300 has been broken. Waiting for the price to return to this support zone to confirm the uptrend and appear bullish reversal patterns, you can find buying opportunities. The profit target is the 1.59000 price zone. ----------------------------------------------------------------------------------------------- Wish you all have a good trading day!
Long
by tradafx
BTC moves in the Sideway zoneH1 time frame. Structure: Downtrend. The price tends to be sideways in the range of 60000 to 62500. Waiting for a clear break of the 62500 resistance and a confirmation retest signal could look for buying opportunities. Or a downside break of 58000 support and a reversal pattern could be found, a buying opportunity could be found. The profit target is the 67000 price zone. ----------------------------------------------------------------------------------------------- Wish you all have a good trading day!
COINBASE:BTCUSD
by tradafx
XAUUSD commentary week 44 from November 1 to November 5H4 time frame. Structure: The falling price breaks the ascending channel. The price is currently likely to test the 1785 resistance and the previous uptrend line at 1790. Wait for the price to confirm the downtrend after testing these prices, then you can find a selling opportunity. The profit target is the 1760 price zone. ----------------------------------------------------------------------------------------------- Wish you all have a good trading day!
OANDA:XAUUSDShort
by tradafx
XAUUSD commentary week 42 from October 18 to October 22H4 time frame. Structure: Uptrend. After the price up to break Key Level, there was no confirmation move but a strong down. Here the price has no confirmation of the downtrend and is stopping at the support level of 1770. From here, a new accumulation zone is likely to form with a range from 1770 - 1800. At the 1770 support zone, we can wait for bullish reversal patterns to buy on the 1-hour time frame. The profit target is the 1800 zone. ----------------------------------------------------------------------------------------------- Wish you all have a good trading day!
OANDA:XAUUSDLong
by tradafx
USD / CAD SHORTDisclaimer: Any of the content presented on my page showing my analysis of the market is just that, an analysis which means this is my personal opinion of where the price is going to go. Do not by any means take this simple analysis for a reason to enter a trade, I am not presenting these analyses as a form of signals, simply a way to get feedback and opinions from others on how my trades look. Take this trade at your own risk, but know forex is a risky market that you can make a lot of money but can lose that money or even more just as fast, enter these markets with your own risk and good luck with your trading :). 4 Hour Analysis: The price has been going in a down trend on the daily and the four hour. Price had stalled out and started to range but did not have a problem making lower lows throughout this range and has also showed rejection to the upside while making moves to the downside. All I would need for a trade at this point is confirmation on a lower time frame and I would be risking one percent of my total capital. 1 Hour Analysis: Price was about to breakout of this range so I got ready waiting for a strong bearish close below the lows of the range. If price breaks below these lows but only by a few pips, that would not be enough confirmation for me to get into this trade, I want a strong candle to the downside before I even consider getting into this trade. Risk Management: Stop risking your entire account on one single trade, this is going to lead to a massive loss adventually and even if you are on a big winning streak all it takes is for one trade to go south and your account could be blown in one trade. Keep your risk management in check and stay consistent, slow down and set a set amount to risk on every trade, for me I risk one percent of my total capital on every trade NO MATTER WHAT or how juicy the trade is or could be. Have a set amount cause in the long term a consistent risk amount will really reveal your edge in the market and put it to work. Look, everyone is different in the way they trade but so everyone is going to risk more or less depending on the person and the kind of strategy, see what works best for you and stick to it. Good luck to you all this week, I hope you have an amazing trading week and please let me know if you have any questions and I can do my best to help you out. Thanks again, KeySlot.
Short
by KeySlot
EUR / AUD SHORT PositionDisclaimer: Any of the content presented on my page showing my analysis of the market is just that, an analysis which means this is my personal opinion of where the price is going to go. Do not by any means take this simple analysis for a reason to enter a trade, I am not presenting these analyses as a form of signals, simply a way to get feedback and opinions from others on how my trades look. Take this trade at your own risk, but know forex is a risky market that you can make a lot of money but can lose that money or even more just as fast, enter these markets with your own risk and good luck with your trading :). Daily Analysis: Price was previously stuck in some kind of range at the top of this last push, one thing that shows me that their is a lot of weakness to the upside is the amount of wicks that price had left when making a push down. Now, after that rejection price has not been able to be stopped and has been continuing to push lower and lower reaching the recent lows and stalling out for a bit. With a price confirmation on a lower time frame this could be a potential trade to the downside and could be one that could take a while to fully play out, if you are patient enough you could get a good amount of pips if it plays out in our favor. Wait for more confirmation on the lower time frames and decide for yourself what would be a good entry tailored to your specific system. Hourly Analysis: On the lower time frames you can see down below, price had tried breaking down below the 1.57778 area, price has now shown a lot of momentum to the down side and is showing only more of a reason for us to get into this trade. For the system that I trade if I get into this I already have a set risk amount which will be only one percent of my total capital at any given time. The only reason I would add on to my position or risk any more on a given trade is when I have my stop at breakeven and price is well below it, I might place another trade risking one percent overall. I hope you all have an amazing trading week, and good luck to all of you out there. If you have any questions about how I trade or you want more details, feel free to leave as many questions you may need down below and I will get back to you as soon as possible. Thanks again, Keyslot
Short
by KeySlot
SHIBS - Confirmation is key, shitcoin or not. Is SHIBS a shitcoin? Absolutely. As a trader, even in a shit coin, you find opportunities. The last impulse move has rejected at the previous ATH candle close. IF we manage to break that previous high I will be watching for an entry and rise a potential second wave. If we fail to push higher RIGHT NOW, and potentially lose the lower support. Then so be it. If you are not in SHIBS right now, stay on the sidelines - WAIT FOR CONFIRMATION
Long
by DexWealth
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