Confirmation Confirmation or validation that an e

Confirmation

Confirmation or validation that an event has occurred. Events are first recognized and deemed to have occurred based on the definition of the event type. The date on which an event is "found" is referred to as the "event date". Each event type must pass additional criteria to be considered "confirmed". This provides additional assurance that the event is valid. The date on which the event meets this additional confirmation criteria is referred to as the "confirmation date". Many events are "confirmed" on the same date that they are "found". In this case, the "event date" is the same as the "confirmation date". However some events are "found" on one date, and then "confirmed" at a later date.

Examples:

Classic Patterns are usually confirmed on the same date that they are found. This type of event can be confirmed using any of three confirmation types. Suppose a Head and Shoulders Top pattern is found on January 1. It is also confirmed on January 1 by meeting the criteria for at least one of the possible confirmation types, such as: the close price penetrated the "neckline" of the pattern. In this case, both the event date and the confirmation date are January 1. Price Crosses Moving Average events are usually recognized on one date and confirmed on a later date. Suppose that the event was found on February 1 but not confirmed yet. Then on February 4 the moving average turned in the direction of the anticipated price move, thereby confirming the prior event. This event would have an event date of February 1 but a confirmation date of February 4.