Day Trading (Candlestick Pattern) Test #6

Question 1

Which of the following statements regarding a Tweezer Top is true?

Accepted Answer

The first candle is bullish followed by a bearish candlestick

Answer

The first candle is bearish followed by a bullish candlestick

Answer

It occurs during a downtrend

Question 2

Which statement about a rising wedge pattern is correct?

Accepted Answer

The aim for the trade is determined by calculating the distance projected downward from the breakpoint between the pattern's lowest dip and highest peak.

Answer

The target for the trade is determined by calculating the distance projected downward from the breakpoint between the lowest dip on the pattern and the halfway point of the highest peak.

Answer

The time interval between the lowest pattern trough and the greatest peak, projected downward from the breakpoint, is used to compute the goal for the trade.

Question 3

What kind of candle is this?

Accepted Answer

Doji

Answer

Long-legged Doji

Answer

Marubozu

Answer

Dragonfly Doji

Question 4

The candlestick chart does not include the _____________?

Accepted Answer

Volume of trading

Answer

Shadows

Answer

Closing price

Answer

Opening price

Question 5

How does a candlestick chart show the daily high price?

Accepted Answer

shadow

Answer

real body

Answer

trendline

Answer

channel

Question 6

Which types of charts offer an understanding of market psychology?

Accepted Answer

Candlestick chart

Answer

Bar chart

Answer

Point and figure chart

Answer

Line chart

Question 7

A rising wedge in a downward trend is recognized as a_______ pattern.

Accepted Answer

Continuation

Answer

reversal

Answer

Sideways

Answer

Distribution

Question 8

What is it? What does it indicate?

Accepted Answer

It signals the reversal and the beginning of a potential downtrend.

Answer

Double Bottom Pattern (looks like the letter "W")

Answer

It signals the reversal and the beginning of a potential uptrend.

Question 9

What is it? What does it represent?

Accepted Answer

Three black crows - selling pressure

Answer

Three white crows - buying pressure

Answer

Three white soldiers - selling pressure

Answer

Three red crows - selling pressure

Question 10

How do you define "bearish"?

Accepted Answer

market going down

Answer

It's going down

Answer

decreasing

Answer

going down