Chart Patterns Flashcards
7 cards from real Day Trading practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Chart Patterns flashcards as text
What does a 'gap and go' pattern require for a valid day trade entry?
Answer: Price gaps up on high relative volume and continues higher after a brief consolidation
A gap and go setup requires a gap up on high relative volume, followed by a brief consolidation before continuing in the gap direction.
In technical analysis, what is a 'bear trap' in the context of chart patterns?
Answer: A pattern that traps bears by producing a false breakout to the downside before reversing upward
A bear trap occurs when price briefly breaks below a support level, trapping short sellers, before reversing sharply upward and stopping them out.
What is the typical volume behavior WITHIN a rectangle consolidation pattern?
Answer: Volume contracts as the pattern develops, then expands on breakout
Volume typically contracts during rectangle consolidation as interest wanes, then expands significantly on the breakout candle to confirm direction.
Which of the following is a reversal pattern, NOT a continuation pattern?
Answer: Rising wedge in a downtrend
A rising wedge in a downtrend is a bearish reversal pattern, while bull flags, pennants, and symmetrical triangles are typically continuation patterns.
What does an 'evening star' pattern signal in a candlestick chart?
Answer: A bearish reversal at the top of an uptrend
An evening star is a three-candle bearish reversal pattern appearing at the top of an uptrend, signaling a transition from buyers to sellers.
When a stock breaks out of an ascending triangle, what is the measured move price target?
Answer: The height of the triangle added to the breakout price
The measured move target for an ascending triangle is calculated by adding the triangle's maximum height to the breakout point.
A 'hammer' candlestick has which of the following characteristics?
Answer: Small real body at the top, long lower shadow, little to no upper shadow
A hammer has a small real body at the top of the candle's range, a long lower shadow at least twice the body's size, and little to no upper shadow.