CMT CMT Candlestick Analysis 3

Question 1

Which candlestick pattern consists of three consecutive bullish candles with each candle closing higher, signaling strong upward momentum?

Accepted Answer

Three White Soldiers

Answer

Rising Three Methods

Answer

Bullish Harami

Answer

Three Inside Up

Question 2

The 'Inverted Hammer' candlestick pattern at the bottom of a downtrend suggests:

Accepted Answer

Potential bullish reversal requiring confirmation

Answer

Continuation of the downtrend

Answer

Strong bearish momentum

Answer

Neutral consolidation phase

Question 3

A 'Gravestone Doji' most commonly appears at:

Accepted Answer

The top of an uptrend as a bearish reversal signal

Answer

The bottom of a downtrend as a bullish signal

Answer

A midpoint of consolidation as a neutral signal

Answer

A support level as a continuation signal

Question 4

What does a 'Long-Legged Doji' indicate about the market?

Accepted Answer

Extreme indecision with high volatility during the session

Answer

Strong bullish momentum

Answer

Strong bearish momentum

Answer

A confirmed trend reversal

Question 5

In candlestick analysis, which of the following increases the reliability of a reversal pattern?

Accepted Answer

Confirmation from the following session's candle

Answer

The pattern appearing mid-trend

Answer

The pattern occurring on low volume

Answer

A single candle formation over a short period

Question 6

A 'Dragonfly Doji' pattern, appearing at the bottom of a downtrend, signals:

Accepted Answer

Potential bullish reversal

Answer

Bearish continuation

Answer

Market equilibrium with no directional bias

Answer

A breakout above resistance