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Technical Analysis: The Complete Resource for Financial Market Technicians by Ph.D. Julie R. Dahlquist, - CMT Charles D. Kirkpatrick II

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Chapter 18. Confirmation

Chapter Objectives

By the end of this chapter, you should be familiar with

  • The methods of plotting volume information on charts

  • Traditional general rules for interpreting volume statistics

  • The major indexes and oscillators that are designed to use volume information as confirmation

  • The concept of open interest and how it might be used for confirmation

  • The concept of momentum

  • The major indexes and oscillators that use price data

The odds increase that a technical signal is correct if there is confirmation from another unrelated indicator. In the days when only chart patterns were available as a means of interpreting price action, the technical analyst used volume as the confirming indicator. Sometimes, depending on the calculating ...

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