To wait for direction confirmation, you can follow these steps:
1. Wait for the candle to close
- *Candle closure:* The candle must close outside the resistance or support level to confirm the direction.
- *Closing the candle on the appropriate timeframe:* The appropriate timeframe must be chosen to confirm the direction.
2. Monitor trading volume
- *Increase in trading volume:* An increase in trading volume with price movement should be monitored to confirm the strength of the direction.
- *Trading volume at break:* Trading volume must be sufficient when breaking a resistance or support level to confirm the direction.
3. Use technical indicators
- *Directional indicators:* Directional indicators such as moving averages can be used to confirm the direction.
- *Momentum indicators:* Momentum indicators such as the Relative Strength Index (RSI) can be used to confirm the strength of the direction.
4. Monitor price behavior
- *Price behavior at resistance and support levels:* Price behavior at resistance and support levels should be monitored to confirm the direction.
- *Direction continuity:* The continuity of the direction should be monitored to confirm its strength.
5. Confirming the direction on different timeframes
- *Confirming the direction on different timeframes:* The direction must be confirmed on different timeframes to confirm its strength.
Examples of direction confirmation
1. *Breaking the resistance level:* If the price breaks the resistance level and the candle closes above it, this may confirm the upward direction.
2. *Increase in trading volume:* If the trading volume increases with the breaking of the resistance level, this may confirm the strength of the direction.
Summary
To wait for direction confirmation, one should monitor the candle closure, trading volume, technical indicators, price behavior, and confirm the direction on different timeframes. There must be strong confirmation of the direction before making any trading decisions.
