Confirmation in Day Trading
Confirmation is something that occurs when a line of support or resistance has been broken and a level has formed through it. What each and every day trader sees as confirmation differs but there are certain times when all traders see the same confirmation in a move.
Confirmation Example
 Look at the graph opposite where the green line runs along. This was a level of support that was drawn earlier. When that level was broken by the red candle the resistance break was occuring. When the next red candlestick came in confirmation of the continued downward trend takes place. This is quite a good entry point for the conservative trader. The exit point would be the second candlestick that came in green.
Day Trading Plays
There are a couple more possible trades that could be made here. The occur using fundamentals of bollinger bands. See Using Bollinger Bands For Plays..
Trading Psychology Of Confirmation
1. Stocks almost always move against your position if you jump in against the current. It takes a lot to turn a stock around but it continually happens thoughout the day. Rather than guessing when this is going to happen day traders often wait for a stock to develop a couple of candlesticks in the opposing direction before getting out of a position or getting into one.
Day Trading Tips - Related Resources
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