One of the most common beliefs in trading is: “The more confirmations you have, the better your trade entry.” It sounds logical. If multiple indicators and signals agree, surely that increases your chances of success?

But in practice, this mindset can be misleading—even dangerous. Let’s unpack the truth behind the “confirmation confluence” myth.

What Are Confirmations in Trading?

Confirmations are additional signals that traders use to validate a trade idea. These might include:

• Technical indicators (RSI, MACD, moving averages)
• Candlestick patterns (engulfing, pin bar)
• Chart patterns (double top, flag)
• Price action levels (support/resistance)
• Fundamental triggers (news, interest rate decisions)

Traders often wait for several of these to align before entering a trade.

Why More Confirmations Aren’t Always Better

While some confirmation is useful, too many can paralyse your decision-making. This is called analysis paralysis. You wait for everything to align perfectly—and miss the trade entirely.

More importantly, many indicators are derived from the same data—price and volume. So five indicators saying the same thing aren’t five independent confirmations. They’re five echoes of the same information.

Lagging vs Leading Confirmations

Many popular indicators (like moving averages and MACD) are lagging. If you wait for several to confirm, you often enter late—after most of the move has already happened.

Leading indicators or price action give earlier signals, but they come with more noise. Finding the right balance is key.

Confirmation Bias: A Psychological Trap

The search for confirmation can lead traders into confirmation bias—only looking for evidence that supports your desired trade. You ignore conflicting signals or manipulate your analysis to “fit” your bias.

This clouds judgement and reduces objectivity.

So, What’s the Right Approach?

• Use 1–3 quality confirmations that are independent, not correlated.
• Focus on context: What is the market structure, trend, and volatility?
• Prioritise price action and risk management over a checklist of signals.
• Develop a clear trade plan: entry, stop, target—and stick to it.

A Better Strategy: Confluence, Not Clutter

Confluence means key elements align at a single point—support level, Fibonacci level, and a strong candlestick rejection, for example. That’s useful.

But stacking confirmation after confirmation just to feel safer doesn’t actually make your trade better—it can delay it or make you miss it entirely.

Conclusion: Confirmation Isn’t Everything

More confirmations don’t always mean a better entry. In fact, relying on too many can cause delays, bias, or missed opportunities. The best traders use a few powerful tools well—not every tool available.

To learn how to build precision entries using smart confluence instead of signal overload, explore our Trading Courses and develop a strategy that fits your trading style with clarity and confidence.