Day Trading (Candlestick Pattern) Test #4

Question 1

The ________ is not regarded as a component of the candlestick chart.

Accepted Answer

Volume of trading

Answer

Closing price

Answer

Opening price

Answer

Shadows

Question 2

Despite typically being viewed as a powerful signal, the ________ represents market indecision.

Accepted Answer

Doji

Answer

Hammer

Answer

Hanging man

Answer

Spinning top

Question 3

The term "double top" is:

Accepted Answer

Reversal chart pattern when the price of a security increases to a certain level and then decreases from that level. It then increases again at that level before finally declining once again.

Answer

Reversal chart pattern in which the price of an asset declines to a certain level and then rises from that level. Then it declines a second time at that level before ultimately turning back on.

Answer

Continuation chart pattern in which the price of an asset increases to a certain level before declining from that level. It then increases again at that level before eventually moving sideways.

Answer

A chart pattern that is indecisive when a security's price rises to a certain level, lowers to the floor, and then rises again. It then increases again at that level before finally declining once again.

Question 4

When there is market consolidation, this pattern emerges. As it matures, the prices get closer together and develop a triangular structure to disguise the move. The sentence refers to a ________ .

Accepted Answer

Pennant pattern

Answer

Rising wedge

Answer

Ascending triangle

Answer

Flag pattern

Question 5

How does a candlestick chart depict the daily opening price?

Accepted Answer

real body

Answer

shadow

Answer

trendline

Answer

channel

Question 6

The market exhibits the ___________ pattern when it produces higher highs and higher lows with a narrowing range.

Accepted Answer

Rising wedge

Answer

Morning star

Answer

Flag

Answer

Falling wedge

Question 7

According to technical experts, ________ represents a stock's price lower bound.

Accepted Answer

Support

Answer

Moving average

Answer

Shadow

Answer

Trendline

Question 8

How does a candlestick chart show the daily high price?

Accepted Answer

trendline

Answer

shadow

Answer

channel

Answer

real body

Question 9

The real body is found in which of the following?

Accepted Answer

Point and figure chart

Answer

Bar chart

Answer

Moving average chart.

Answer

Candlestick chart

Question 10

What does this three-day pattern of trend reversal look like?

Accepted Answer

Bullish Inside Up

Answer

Bullish Outside Up

Answer

Bearish Inside Down