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CONFIRMATION

The condition you require before taking a trade, such as the candle closing above the level.

Published by The Retail Trader · JUL 31, 2026 · Price Action

Confirmation — A condition you require before taking a trade, such as the candle closing above the level.

WHERE THIS FITS IN

This term comes under Price Action, in the "MOVE terms" section. Ab the words that come up in every trading conversation — getting them wrong is the most costly:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Trend
• Sideways / Range
• Pullback
• Retracement
• Reversal
• Breakout
• Breakdown
• Fakeout / False Breakout
• Retest
• Gap Up / Gap Down
• Gap Fill
• Consolidation

To read the entire group and all its examples in one place, see the journal "PRICE ACTION: THE LANGUAGE OF THE CANDLE" - this term is taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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