InvestorQ : What are the types of multiple confirmations I should look in the market?
Priyanka N made post

What are the types of multiple confirmations I should look in the market?

Answer
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Moii Chavate answered.
2 years ago


Let us understand that by an illustration. Let us assume that you are taking a trading call on Reliance industries. You have seen that the stock is consistently touching the short term support and bouncing back. Can you take that as a signal and buy the stock? That is hard to answer as it is always safer to opt for multiple confirmations. Let us go back to the case of the Reliance Trade. There are a variety of multiple confirmations that you can look for. You can look for the volume support and whether the volume build-up is on the up side or the down side. That is normally quite a decisive factor for aggressive traders. Even if you are a short term trader in the market, do not underestimate the power of news flows while taking your trading call. Look at banks post the PNB crisis. Although they are touching supports, the presence of negative news flows is making these stocks consistently weaker.