4-Point Confirmation System for Trade Entry

4-Point Confirmation system shown using the InsiderFinance Technical Analysis System

Generally, the more data points supporting a trade decision, the higher the probability of success. Again, that’s confluence!

That’s why we designed our 4-point confirmation system to improve the chance of success on every trade. It’s the ultimate indication of confluence.

1. Buy/Sell Signal

  • Buy/Sell Signals are part of the INSIDERFINACE ALGO and are shown on the chart as a green B (buy) or red S (sell) label.
  • This is the first and most crucial confirmation signal because many technical indicators in confluence are used to determine each signal.

2. Swing Diamond/Trend Triangles

  • Swing Diamonds and Trend Triangles are part of the INSIDERFINACE ALGO and are shown on the chart as a green (bullish) or red (bearish) diamond/triangle.
  • Seeing a Swing Diamond or Trend Triangle below a Buy/Sell signal (as in the example above) confirms the Buy/Sell signal.
  • This is the second confirmation signal before entering a trade.

3. Momentum Signal

  • Momentum signals are part of the INSIDERFINACE MOMENTUM indicator. They are shown on the chart as a green (bullish) or red (bearish) ball, indicating the beginning of a potential bull (green) or bear (red) breakout swing.
  • This is the third confirmation signal before entering a trade.

4. Squeeze Signal

  • Squeeze signals are part of the INSIDERFINACE SQUEEZE indicator. They are shown on the chart as a green (bullish) or red (bearish) ball above or below the histogram bars, indicating the beginning of a potential bull (green) or bear (red) trend.
  • This is the fourth confirmation signal before entering a trade.

The image above shows all four bull confirmations present before entering the trade. At the high point of the chart, three of the four bear confirmations are present before the big bear move down.

The 4-Point Confirmation System gives traders the highest likelihood of success by combining multiple indicators into a single strategy (i.e. trading in confluence).

The more confirmations you have before entering a trade, the greater the likelihood of success.

However, you should still consider placing a stop loss for your trade, as even the most promising trades can be impacted by market conditions.

 
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