Glossary / Candlesticks

Confirmation

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

A row of sculptural candlesticks: solid teal up candles and translucent red down candles, with wicks and no prices.
Illustration of the idea, not a market chart and not a result.

Follow-through after a pattern that supports it, such as the next candle closing beyond the pattern's high (for a bullish pattern) or low (for a bearish one).

How traders use it: Waiting for confirmation usually means a worse price but more evidence. Traders decide in advance which they prefer and test that choice.

Common mistake: Adding "confirmations" until the move is over.

Related: Entry trigger · Pattern context

See this term in the full glossary · All terms

Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.