Day Trading (Candlestick Pattern) Test #2
True/False: Candlestick charting originated in China more than 150 years ago. It was used to monitor changes in rice market prices.
Explanation:
False; Japan is where candlestick charting originated.
Do you require a data set that includes open, high, low, and close values for each time period in order to construct a candlestick chart?
Explanation:
Yes, you require a data set that includes open, high, low, and close values for each time period in order to construct a candlestick chart.
True/False: Steve Nison introduced and popularized candlestick charting among Western investors around 1990.
Explanation:
True, Japanese Candlestick Charting Techniques by Steve Nison, published in 1990, was the book that first popularized candlestick charts.
True/False: Early in the cycle, candlestick charting is ineffective at spotting market reversals.
Explanation:
False; in actuality, candlestick charts are most effective at quickly and correctly identifying significant market reversals.
True/False: Candlestick charts are admired for being very illustrative and accurately expressing market emotion.
Explanation:
It's true that candlesticks are really striking. They are therefore simple to read. They are also good at exposing market psychology.
True/False: The majority of candlestick chart patterns need be committed to memory in order to use the technique properly.
Explanation:
False; instead, it's crucial to learn the ten most popular and successful patterns as well as how to read candlesticks for clues about market psychology.
True/False: Professional investors are not well-versed in candlestick charting. As a result, it provides individuals who master the approach with a clear competitive advantage.
Explanation:
False. The majority of seasoned investors utilize candlestick charts regularly while making investing decisions. Candlestick charting is extensively employed by people and businesses who control the majority of the market share, therefore their patterns have a predictable impact on markets. Therefore, using this strategy can help retail investors level the playing field and spot the early warning indicators that professionals also utilize to make investing decisions.
Who invented candlestick graphs?
Explanation:
Munehisa Homma, a Japanese rice trader, is credited with creating the idea of candlestick charting. While admitting the impact of supply and demand on rice prices, Homma found during normal trading that the rice market was also influenced by the emotions of traders.
Which of these may be analyzed without using a candlestick?
Correct answer:
Diamond
How many parts are there in a conventional candlestick?
Explanation:
A candlestick is made up of three parts: the body, lower shadow, and higher shadow.
Which of these doesn't involve candlestick trading?
The correct answer:
Direct trading