What is Confirmation?

The use of an additional indicator or signal to verify a trade setup.

In-Depth Explanation

Traders use confirmation to avoid "false signals." For example, a breakout might be confirmed by a spike in volume or an RSI crossover.

"The price broke resistance, but the trader waited for the 1H candle to close for confirmation."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.