Technical Analysis

1. The following image shows the formation of?

Bearish Engulfing

Bullish Engulfing

Morning Star

Evening Star

The given image shows a bullish engulfing pattern. This pattern occurs when a small bearish candle is followed by a larger bullish candle that completely engulfs the previous candle's body. It indicates a reversal of the previous downtrend and suggests that buyers have taken control of the market.

Explanation

The given image shows a bullish engulfing pattern. This pattern occurs when a small bearish candle is followed by a larger bullish candle that completely engulfs the previous candle's body. It indicates a reversal of the previous downtrend and suggests that buyers have taken control of the market.

2. A green candlestick signifies which of the following?

Close higher than the Open

Open higher than the Close

Close at the Open

None of the Above

A green candlestick signifies a positive day in the markets.

Explanation

A green candlestick signifies a positive day in the markets.

3. A Doji shows?

Uptrend

Downtrend

Indecision

Market Close

A doji occurs when the market open is near the market close. Shows indecision in the markets.

Explanation

A doji occurs when the market open is near the market close. Shows indecision in the markets.

4. An evening star indicates?

End of an uptrend

End of a downtrend

Indecision

Market Close

The bulls have burned out!

Explanation

The bulls have burned out!

5. The following image shows?

Morning Star

Evening Star

Three White Soldiers

Three Black Crows

Indication that prices will move lower.

Explanation

Indication that prices will move lower.

6. Breakout occur when price breaks which of the following?

Support

Resistance

Open

Both a & b

Breakout occurs when the price of an asset breaks through a significant level of support or resistance. Support is a level where the price tends to find buying pressure and bounces back up, while resistance is a level where the price tends to find selling pressure and reverses its upward movement. When the price breaks through either support or resistance, it indicates a shift in market sentiment and often leads to a significant move in the direction of the breakout. Therefore, the correct answer is "Both a & b" because breakout can occur when the price breaks either support or resistance levels.

Explanation

Breakout occurs when the price of an asset breaks through a significant level of support or resistance. Support is a level where the price tends to find buying pressure and bounces back up, while resistance is a level where the price tends to find selling pressure and reverses its upward movement. When the price breaks through either support or resistance, it indicates a shift in market sentiment and often leads to a significant move in the direction of the breakout. Therefore, the correct answer is "Both a & b" because breakout can occur when the price breaks either support or resistance levels.

7. Reversal Candlesticks have?

Large wicks, small bodies

Small wicks, large bodies

Large wicks, large bodies

Small wicks, small bodies

A large wick signifies that a market reached a certain level that it was not able to close at.

Explanation

A large wick signifies that a market reached a certain level that it was not able to close at.

8. Which of the following in an example of dynamic support and resistance?

Bollinger Bands

RSI

MACD

None of the Above

Bollinger Bands are uses to show price action within a certain standard deviation of price

Explanation

Bollinger Bands are uses to show price action within a certain standard deviation of price

9. The following image shows?

Breakout

Open

Close

None of the Above

The given image shows a breakout, which is a technical analysis pattern in which the price of an asset breaks through a resistance level or a support level. A breakout is considered significant as it indicates a potential change in the direction of the price trend. In this case, since the image does not show any other relevant information or options, we can conclude that the correct answer is breakout.

Explanation

The given image shows a breakout, which is a technical analysis pattern in which the price of an asset breaks through a resistance level or a support level. A breakout is considered significant as it indicates a potential change in the direction of the price trend. In this case, since the image does not show any other relevant information or options, we can conclude that the correct answer is breakout.

10. The following image shows?

A break through of the 1.04 level

An uptrend

Three White Soldiers

All of the Above

This is a strong bullish signal. The market looks like it will go higher until it finds a new resistance level.

Explanation

This is a strong bullish signal. The market looks like it will go higher until it finds a new resistance level.

11. Characteristic(s) of a marabozu candletstick is(are) ?

Full candlestick

Signifies strong uptrend or downtrend

Little to no wick

All of the Above

Marabozu candlesticks are a good sign of a strong uptrend or downtrend

Explanation

Marabozu candlesticks are a good sign of a strong uptrend or downtrend

12. The following image shows?

Market has found a floor at 79.00

Bearish market

Market will not go higher than 84.00

None of the Above

Market failed to close below 79.00. Formed an extremely long wick.

Explanation

Market failed to close below 79.00. Formed an extremely long wick.

13. A symmetrical candle indicates ?

Bullish market

Bearish market

Indecision

None of the Above

Buyers and sellers are fighting in the formation of a symmetrical triangle.

Explanation

Buyers and sellers are fighting in the formation of a symmetrical triangle.

14. Tweezer Bottoms indicates?

Bullish Rally

Reversal

Bearish Rally

Both a & b

Tweezer bottoms indicate the bottom of the market

Explanation

Tweezer bottoms indicate the bottom of the market

15. An acceptable risk to reward ratio is ?

4:1

3:1

2:1

1:2

You want the odds in your favor!

Explanation

You want the odds in your favor!