Forex Trading Technical Analysis

Question 1

What is a candlestick chart in forex?

Accepted Answer

A chart showing open, high, low, and close prices for each time period, with colored bodies showing direction

Answer

A chart shaped like candles

Answer

A decoration chart

Answer

A chart only used in Japan

Question 2

What does a 'support level' indicate in technical analysis?

Accepted Answer

A price level where buying pressure tends to prevent the price from falling further

Answer

A level where the government supports the currency

Answer

The highest price achieved

Answer

A technical assistance number

Question 3

What is a moving average?

Accepted Answer

A continuously calculated average of a currency's price over a specific number of periods, smoothing out fluctuations

Answer

The average distance a trader moves

Answer

A static price point

Answer

The average number of trades per day

Question 4

What is the RSI (Relative Strength Index)?

Accepted Answer

A momentum oscillator that measures overbought and oversold conditions on a scale of 0-100

Answer

A measure of currency strength vs. GDP

Answer

A risk assessment score

Answer

A regulatory standard index

Question 5

What is a trend line in forex analysis?

Accepted Answer

A straight line connecting successive highs or lows to identify the direction of price movement

Answer

A line showing the latest fashion in trading

Answer

A vertical line on the chart

Answer

The border of the chart

Question 6

What does a 'head and shoulders' pattern signal?

Accepted Answer

A reversal pattern suggesting the current trend is about to change direction

Answer

A shampoo brand

Answer

A continuation pattern

Answer

A random formation with no significance