InvestorQ : I heard of multiple confirmations in trading. What is that?
Priyanka N made post

I heard of multiple confirmations in trading. What is that?

Answer
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swati Bakhda answered.
2 years ago


A multiple confirmation is like a double certainty of a trend or a price movement. Normally, when we trade we do focus on trends and signals. But more often than not, such signals can be quite misleading. That is why we must wait for multiple confirmations. A smart trader never trades a stock or an index purely based on one signal. They provide for the fact that isolated signals can be misleading and therefore look for multiple signals. These multiple confirmations could be technical, fundamental or volume driven.