Candlestick Pattern Quiz Questions And Answers

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Candlestick Pattern Quiz Questions And Answers - Quiz

Candlestick patterns are used to predict the future direction of price movement. If you want to test your knowledge on it, try the 'candlestick pattern quiz' that is given below. This quiz consists of multiple-choice based questions on the same topic. This means that for every question, you need to pick the most appropriate option. Your final score will be given at the end. So, have you understood the rules? It's time to begin then.


Questions and Answers
  • 1. 

    What do these types of candles represent in the market place. 

    • A.

      Bearish Bias

    • B.

      Bullish Bias

    • C.

      Indecision

    • D.

      Miss print on the chart

    Correct Answer
    C. Indecision
    Explanation
    These types of candles represent indecision in the market place. Indecision candles have small bodies and long wicks, indicating that neither buyers nor sellers are in control. This suggests that the market is uncertain and could potentially go either way. Traders often interpret these candles as a sign to wait for more confirmation before making any trading decisions.

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  • 2. 

    What is the name of this candle pattern? 

    • A.

      Shooting Star

    • B.

      Evening Star

    • C.

      Bearish Engulfing

    • D.

      Morning Star

    Correct Answer
    D. Morning Star
    Explanation
    The given candle pattern is called the Morning Star. This pattern consists of three candles: a long bearish candle, followed by a small bullish or bearish candle with a gap, and finally a long bullish candle. The pattern indicates a potential reversal of a downtrend, as the first candle shows selling pressure, the second shows indecision, and the third shows buying pressure.

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  • 3. 

    What is the name of this candle pattern?

    • A.

      Evening Star

    • B.

      Shooting Star

    • C.

      Morning Star

    • D.

      Afternoon Star

    Correct Answer
    B. Shooting Star
    Explanation
    The correct answer is Shooting Star. A shooting star candle pattern is formed when the price opens higher, trades much higher during the session, but then closes near its opening price. It has a small real body and a long upper shadow, which indicates that there was a significant amount of selling pressure during the session. This pattern suggests a potential reversal in the trend, as it shows that the buyers were unable to maintain control and the sellers took over.

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  • 4. 

    The following candle pattern is called a _______________.

    • A.

      Evening Star

    • B.

      Shooting Star

    • C.

      Bearish Engulfing

    • D.

      Inside Candle

    Correct Answer
    C. Bearish Engulfing
    Explanation
    A bearish engulfing pattern occurs when a small bullish candle is followed by a larger bearish candle that completely engulfs the previous candle's body. This pattern indicates a potential reversal of an uptrend, as it suggests that sellers have taken control and overwhelmed the buyers. The larger bearish candle shows increased selling pressure, leading to a possible downward move in the price.

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  • 5. 

    The following candle is called a _______________.

    • A.

      Doji Candle

    • B.

      Hammer Candle

    • C.

      Bearish Engulfing

    • D.

      Bullish Candle

    Correct Answer
    B. Hammer Candle
    Explanation
    A hammer candle is a type of candlestick pattern that is formed when the opening and closing prices are very close together, with a long lower wick and little to no upper wick. It is called a hammer candle because it resembles a hammer, with a small body and a long handle. This pattern is considered bullish and is often seen as a reversal signal, indicating a potential trend reversal from bearish to bullish.

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  • 6. 

    Name the correct A, B, C, and D points on this candle.

    • A.

      A=HIGH B=CLOSE C=OPEN D=LOW

    • B.

      A=HIGH B=OPEN C=CLOSE D=LOW

    Correct Answer
    B. A=HIGH B=OPEN C=CLOSE D=LOW
    Explanation
    The correct answer is A=HIGH, B=OPEN, C=CLOSE, D=LOW. This is because in candlestick charting, the "high" represents the highest price reached during the time period, the "open" represents the price at the beginning of the time period, the "close" represents the price at the end of the time period, and the "low" represents the lowest price reached during the time period.

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  • 7. 

    Name the correct A, B, C, and D points on this candle.

    • A.

      A=HIGH B=CLOSE C=OPEN D=LOW

    • B.

      A=HIGH B=OPEN C=CLOSE D=LOW

    Correct Answer
    A. A=HIGH B=CLOSE C=OPEN D=LOW
    Explanation
    The correct answer is A=HIGH, B=CLOSE, C=OPEN, D=LOW. This is because in candlestick charting, the high point represents the highest price reached during the time period, the low point represents the lowest price reached, the open point represents the opening price, and the close point represents the closing price.

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  • 8. 

    The following candle pattern is called a _______________.  

    • A.

      Shooting Star

    • B.

      Morning Star

    • C.

      Evening Star

    • D.

      Hammer Star

    Correct Answer
    C. Evening Star
    Explanation
    The correct answer is Evening Star. An evening star is a bearish reversal pattern that consists of three candlesticks. The first candlestick is a large bullish candle, followed by a small-bodied candle with a gap up or down from the previous candle. The third candlestick is a large bearish candle that closes below the midpoint of the first candlestick. This pattern indicates a potential trend reversal from bullish to bearish.

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  • 9. 

    Select 2 bearish candle patterns.

    • A.

      Hammer Candle

    • B.

      Shooting Star

    • C.

      Evening Star

    • D.

      Morning Star

    Correct Answer(s)
    B. Shooting Star
    C. Evening Star
    Explanation
    The shooting star is a bearish candle pattern that forms when the open, high, and close prices are near the high of the candle, but the close is significantly lower than the open. This pattern suggests a potential reversal in an uptrend. The evening star is another bearish pattern that consists of three candles: a large bullish candle, followed by a small bullish or bearish candle, and then a large bearish candle. This pattern indicates a reversal from an uptrend to a downtrend, as it shows a loss of bullish momentum.

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  • 10. 

    Bearish reversal patterns are most probable when they occur at ________________.

    • A.

      Resistance Levels

    • B.

      Support Levels

    • C.

      Any Level

    Correct Answer
    A. Resistance Levels
    Explanation
    Bearish reversal patterns are most probable when they occur at resistance levels. This is because resistance levels represent a price level where selling pressure is strong and can potentially overpower buying pressure, causing a reversal in the upward trend. When a bearish reversal pattern forms at a resistance level, it indicates that the selling pressure has increased and the price is likely to decline. Therefore, resistance levels are significant in identifying potential bearish reversals in the market.

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  • 11. 

    Check all that apply.   Name 4 types of bullish candlestick patterns.   

    • A.

      Morning star 

    • B.

      Evening Star Reversal

    • C.

      Inverse hammer

    • D.

      Shooting Star

    • E.

      Three white soldiers

    • F.

      Horse Shoe Reversal

    • G.

      Bullish Engulfing

    Correct Answer(s)
    A. Morning star 
    C. Inverse hammer
    E. Three white soldiers
    G. Bullish Engulfing
    Explanation
    The correct answer includes the Morning Star, Inverse Hammer, Three white soldiers and Bullish Engulfing as the four types of bullish candlestick patterns. These candlestick patterns are used by traders and analysts to identify potential buying opportunities and reversals in price trends. However, it's important to consider other technical indicators and factors when making trading decisions. The other options listed are not types of bullish candlestick patterns.

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