Day Trading (Candlestick Pattern) Test #5

Question 1

What is this two-day pattern of trend reversal?

Accepted Answer

Bullish Engulfing

Answer

The Bullish Engulfing pattern is a two-day bullish reversal pattern that typically occurs during a downtrend. It is characterized by a small bearish candle on the first day being completely 'engulfed' by a large bullish candle on the second day. This indicates a strong shift in momentum from sellers to buyers, signaling a potential trend reversal upwards.

Question 2

What does this trend continuation pattern of two days mean?

Accepted Answer

Bullish Thrusling Line

Answer

The Bullish Thrusting Line (likely 'Thrusting Line') is a two-day bullish continuation pattern. It appears in an uptrend, where a bearish candle on the first day is followed by a bullish candle that opens below the first day's low but closes above its midpoint. This indicates that despite an initial dip, buyers regained control, suggesting the uptrend will continue.

Question 3

What is this two-day pattern of trend reversal?

Accepted Answer

Bullish Harami

Answer

The Bullish Harami is a two-day bullish reversal pattern that forms during a downtrend. It consists of a large bearish candle on the first day, followed by a small bullish candle whose real body is completely contained within the real body of the first candle. This 'pregnant' appearance suggests indecision and a potential shift in momentum, often preceding a reversal upwards.

Question 4

What exactly is this three-day pattern of trend reversal?

Accepted Answer

Bullish Outside Up

Answer

The Bullish Outside Up is a three-day bullish reversal pattern. It starts with a bearish candle, followed by a bullish candle that completely engulfs the first (an outside day). The third day is another bullish candle that closes higher than the second, confirming the strong upward momentum and trend reversal.

Question 5

What does this trend continuation pattern of two days mean?

Accepted Answer

Bullish Separating Line

Answer

The Bullish Separating Line is a two-day bullish continuation pattern that appears in an strong uptrend. It consists of a bearish candle followed by a bullish candle that opens at the same price as the first candle's open, but then closes higher. This pattern indicates that despite a temporary dip, the bullish sentiment remains strong, confirming the continuation of the uptrend.

Day Trading Practice Test

Day Trading Practice Test

Day Trading (Candlestick Pattern) Test #5