CMT Candlestick Analysis Flashcards
6 cards from real CMT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CMT Candlestick Analysis flashcards as text
A 'Doji' candlestick is characterized by which of the following?
Answer: Open and close prices are nearly equal
A Doji forms when the open and close prices are virtually the same, signaling indecision in the market.
Which candlestick pattern is formed by a small body at the top of the candle with a long lower shadow, indicating a potential bullish reversal?
Answer: Hammer
A Hammer has a small real body near the top and a long lower shadow, suggesting that sellers drove prices down but buyers pushed them back up.
A 'Shooting Star' candlestick pattern most commonly signals:
Answer: Bearish reversal
A Shooting Star appears at the top of an uptrend with a long upper shadow and small body, signaling a potential bearish reversal.
In Japanese candlestick analysis, a 'Marubozu' candle indicates:
Answer: A candle with no shadows, showing strong momentum
A Marubozu has no upper or lower shadows, meaning the open equals the high (or low) and the close equals the opposite extreme, reflecting strong directional conviction.
Which two-candle pattern forms when a small bearish candle is followed by a large bullish candle that completely engulfs the first, signaling a potential reversal?
Answer: Bullish Engulfing
A Bullish Engulfing pattern occurs when a large bullish candle's body completely covers the prior small bearish candle, indicating buyers have taken control.
The 'Evening Star' candlestick pattern is a:
Answer: Three-candle bearish reversal pattern
The Evening Star is a three-candle bearish reversal pattern consisting of a large bullish candle, a small-bodied candle (the star), and a large bearish candle.