CMT CMT Candlestick Analysis 2

Question 1

A 'Harami' candlestick pattern occurs when:

Accepted Answer

The second candle's body is contained within the first candle's body

Answer

The second candle closes above the first candle's high

Answer

Both candles are doji patterns

Answer

The second candle gaps above the first candle

Question 2

Which candlestick pattern is identified by a long lower shadow at least twice the length of the real body, appearing in a downtrend and signaling a potential reversal?

Accepted Answer

Hammer

Answer

Inverted Hammer

Answer

Hanging Man

Answer

Doji

Question 3

A 'Dark Cloud Cover' pattern is most reliably used as:

Accepted Answer

A bearish reversal signal in an uptrend

Answer

A bullish continuation signal

Answer

A neutral consolidation pattern

Answer

A volume-based divergence indicator

Question 4

A 'Piercing Line' pattern in candlestick analysis signals:

Accepted Answer

Bullish reversal in a downtrend

Answer

Bearish reversal at resistance

Answer

Continuation of the existing trend

Answer

Indecision between buyers and sellers

Question 5

A 'Spinning Top' candlestick is characterized by:

Accepted Answer

A small body with upper and lower shadows of similar length

Answer

A long body with no shadows

Answer

A body that gaps away from the prior candle

Answer

An open equal to the prior session's close

Question 6

Which of the following best describes a 'Morning Star' candlestick pattern?

Accepted Answer

A three-candle bullish reversal with a small middle candle

Answer

A single large bullish candle after a gap down

Answer

Two consecutive bullish engulfing candles

Answer

A long lower shadow followed by a gap up