Crypto Trading Review and Assessment 3

Question 1

On a candlestick chart, a green (bullish) candle means the close was:

Accepted Answer

Higher than the open

Answer

A bullish candle closes above its opening price.

Question 2

What does RSI (Relative Strength Index) primarily measure?

Accepted Answer

Momentum and overbought/oversold conditions

Answer

RSI gauges momentum, flagging overbought (>70) or oversold (<30) levels.

Question 3

A 'golden cross' occurs when:

Accepted Answer

A short-term MA crosses above a long-term MA

Answer

A golden cross (e.g. 50-day above 200-day MA) is a bullish trend signal.

Question 4

In trading, 'support' refers to a price level where:

Accepted Answer

Buying interest tends to halt declines

Answer

Support is a level where demand historically prevents further price drops.

Question 5

What does trading volume help confirm?

Accepted Answer

The strength behind a price move

Answer

High volume lends conviction to a price move; low volume makes it suspect.

Crypto Trading Practice Test