CMT CMT Candlestick Analysis

Question 1

A 'Doji' candlestick is characterized by which of the following?

Accepted Answer

Open and close prices are nearly equal

Answer

A very long upper shadow with no lower shadow

Answer

A large bullish body with no wicks

Answer

Open price is far above the close price

Question 2

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?

Accepted Answer

Hammer

Answer

Shooting Star

Answer

Engulfing

Answer

Spinning Top

Question 3

A 'Shooting Star' candlestick pattern most commonly signals:

Accepted Answer

Bearish reversal

Answer

Bullish continuation

Answer

Market consolidation

Answer

Volume spike confirmation

Question 4

In Japanese candlestick analysis, a 'Marubozu' candle indicates:

Accepted Answer

A candle with no shadows, showing strong momentum

Answer

Equal open and close prices

Answer

A reversal at a key support level

Answer

High volume with a neutral close

Question 5

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?

Accepted Answer

Bullish Engulfing

Answer

Bearish Harami

Answer

Dark Cloud Cover

Answer

Piercing Line

Question 6

The 'Evening Star' candlestick pattern is a:

Accepted Answer

Three-candle bearish reversal pattern

Answer

Single-candle bullish reversal signal

Answer

Two-candle continuation signal

Answer

Single-candle bearish continuation pattern