Forex trading candle conformation
Confirmation Candle is a powerful concept in price action trading that helps traders validate a potential market move before entering a trade. It appears after a signal candle or key level (such as support or resistance) and confirms whether the price is likely to continue in a specific direction. A strong bullish confirmation candle usually closes above the previous candle with solid momentum, signaling a potential buy opportunity. Conversely, a strong bearish confirmation candle closes lower with clear selling pressure, indicating a possible sell setup. Using confirmation candles reduces false entries and improves trade accuracy by ensuring that the market direction is clearly supported by price behavior.