Understanding Confirmation Candles in Trading
A confirmation candle is a crucial tool in trading that helps confirm trend reversals or continuations before entering a trade. This image perfectly illustrates the importance of waiting for confirmation before making a move.
✅ Bullish Confirmation: When a strong green candle follows a bullish setup, it signals a potential buy opportunity.
❌ Bearish Confirmation: When a strong red candle follows a bearish setup, it signals a potential sell opportunity.
Waiting for confirmation reduces false signals and improves trade accuracy. Trade smart, follow trends, and always use risk management.