Candlestick Analysis & Japanese Techniques Flashcards
6 cards from real CTA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Candlestick Analysis & Japanese Techniques flashcards as text
What distinguishes a 'Spinning Top' from a 'Doji' candlestick?
Answer: A Spinning Top has a larger body relative to its shadows compared to a Doji
A Spinning Top has a small but visible real body with upper and lower shadows, while a Doji has virtually no body because open and close prices are essentially equal.
The 'Three White Soldiers' pattern is a bullish continuation signal when:
Answer: Three consecutive long white candles appear after a downtrend reversal or during a consolidation, each closing near the high
Three White Soldiers consists of three consecutive long bullish candles, each opening within the prior body and closing near its high, signaling strong and sustained buying momentum.
A 'Dark Cloud Cover' pattern signals bearish reversal when:
Answer: The second candle opens above the prior candle's high and closes below the midpoint of the first bullish candle
Dark Cloud Cover occurs when a bearish candle opens above the prior bullish candle's high but closes below its midpoint, indicating that sellers have seized control from buyers.
Which candlestick pattern is the inverse of the Hammer and appears at the top of an uptrend?
Answer: Hanging Man
The Hanging Man looks identical to a Hammer (small body, long lower shadow) but appears after an uptrend, signaling that selling pressure is beginning to emerge at the highs.
What is a 'Harami' candlestick pattern?
Answer: A two-candle pattern where a small candle's body is contained within the prior larger candle's body
A Harami (Japanese for 'pregnant') features a large candle followed by a smaller candle whose body is completely within the prior candle's range, suggesting a potential trend pause or reversal.
In candlestick analysis, what does a 'Marubozu' candle represent?
Answer: A full-bodied candle with no upper or lower shadows, indicating strong directional conviction
A Marubozu has no wicks — the open equals the low (bullish) or high (bearish) and the close equals the high (bullish) or low (bearish), showing dominant one-sided control throughout the session.