Reading Charts Subject Test — TradeSmart Academy

Question 1 of 20

What is a flag pattern?

A

A bearish reversal

B

A consolidation after a strong move before continuing

C

A double top pattern

D

A head and shoulders

0 of 20 answered

Question 2 of 20

Click on the Hammer candlestick:

👆 Click on the correct candle

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Question 3 of 20

What is resistance in trading?

A

A level where price tends to bounce up

B

The lowest price ever reached

C

A level where price tends to stop and reverse down

D

A moving average

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Question 4 of 20

What does higher timeframe analysis help with?

A

Finding exact entry points

B

Understanding the overall trend direction

C

Calculating position size

D

Reading volume

0 of 20 answered

Question 5 of 20

What does volume confirm?

A

The color of candles

B

The strength of a price move

C

The timeframe being used

D

The type of chart

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Question 6 of 20

What does an uptrend consist of?

A

Lower highs and lower lows

B

Higher highs and higher lows

C

Flat price movement

D

Random price spikes

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Question 7 of 20

What is a spinning top candlestick?

A

A candle with no wicks

B

A candle with small body and long wicks — indecision

C

A strong bullish candle

D

A bearish marubozu

0 of 20 answered

Question 8 of 20

What is a timeframe in trading?

A

The time it takes to execute a trade

B

The period each candlestick represents

C

The time a position is held

D

Exchange opening hours

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Question 9 of 20

What is the neckline in a Head and Shoulders pattern?

A

The top of the head

B

The support level connecting the two shoulders

C

The highest point of the pattern

D

The entry point

0 of 20 answered

Question 10 of 20

What does a bullish candlestick indicate?

A

Price went down

B

Price went up

C

Price stayed flat

D

Volume decreased

0 of 20 answered

Question 11 of 20

What is a Cup and Handle pattern?

A

A bearish reversal pattern

B

A bullish continuation pattern shaped like a cup

C

A double top pattern

D

A triangle pattern

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Question 12 of 20

Click on the Doji candlestick:

👆 Click on the correct candle

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Question 13 of 20

Draw the Support level on this chart:

✏️ Click and drag to draw the level

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Question 14 of 20

What does a bearish candlestick indicate?

A

Price went up

B

Volume increased

C

Price went down

D

Market opened higher

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Question 15 of 20

What does a long upper wick on a candle indicate?

A

Strong buying pressure

B

Sellers pushed price back down from the high

C

Price closed at the high

D

Bullish momentum

0 of 20 answered

Question 16 of 20

What does a Marubozu candle mean?

A

A candle with very long wicks

B

A candle with no wicks — strong momentum

C

A doji candle

D

An indecision candle

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Question 17 of 20

What is a triangle pattern?

A

A reversal pattern only

B

A consolidation pattern where price converges before a breakout

C

A pattern with three peaks

D

A candlestick pattern

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Question 18 of 20

What is a Head and Shoulders pattern?

A

A bullish continuation pattern

B

A bearish reversal pattern with three peaks

C

A chart with no trend

D

A candlestick pattern

0 of 20 answered

Question 19 of 20

What does a downtrend consist of?

A

Higher highs and higher lows

B

Flat price movement

C

Lower highs and lower lows

D

Random price movement

0 of 20 answered

Question 20 of 20

What is a bullish engulfing pattern?

A

A small green candle after a red candle

B

A large green candle that completely covers the previous red candle

C

Two red candles in a row

D

A doji followed by a green candle

0 of 20 answered