First, what are confirmation indicators?
They are analytical tools used to know the current market trend. To determine entry and exit points of trades, to reduce risks.
There are many types of confirmation indicators, but the most common types include:
● Moving averages: These are technical indicators used to determine the general direction of the price.
When a short-term moving average crosses a long-term moving average, it indicates a change in trend.
● Relative Strength Index (RSI): The Relative Strength Index is a technical indicator that measures the strength of a current trend. When the RSI is above 70, the market is considered overbought, and when it is below 30, the market is considered oversold.
● Divergence Indicators: Divergence indicators are technical indicators used to compare price with another technical indicator. When price diverges from the indicator, it can signal a change in trend.
How to use confirmation indicators?
This is what we will complete in another article.
