Candlestick Patterns MCQs

MCQs on Candlestick Patterns

1. What does a bullish candlestick pattern indicate? A) Price is likely to decrease B) Price is likely to increase C) Price is stagnant D) Price has reached its highest point Answer: B) Price is likely to increase 2. What does a “doji” candlestick signify? A) Strong buying pressure B) Strong selling pressure C) Market indecision D) Continuation of the trend Answer: C) Market indecision 3. Which pattern consists of three candlesticks, where the first is a bearish candle, the second is a small body candle, and the third is a bullish candle? A) Morning star B) Evening star C) Three white soldiers D) Bearish engulfing Answer: A) Morning star 4. In candlestick analysis, what does a “hammer” pattern indicate? A) Potential reversal from a bullish trend B) Potential reversal from a bearish trend C) Continuation of a downtrend D) Continuation of an uptrend Answer: B) Potential reversal from a bearish trend 5. What is the significance of a “bullish engulfing” pattern? A) Indicates a continuation of the downtrend B) Indicates a potential reversal to an uptrend C) Indicates market indecision D) Indicates high volatility Answer: B) Indicates a potential reversal to an uptrend 6. Which candlestick pattern is often seen at the end of a bullish trend and suggests a bearish reversal? A) Bullish harami B) Shooting star C) Bullish engulfing D) Morning star Answer: B) Shooting star 7. What does a “hanging man” candlestick pattern suggest? A) Strong bullish sentiment B) Possible bearish reversal C) Indecision in the market D) Strong buying pressure Answer: B) Possible bearish reversal 8. How is the “three black crows” pattern characterized? A) Three bullish candlesticks B) Three bearish candlesticks C) A doji followed by two bearish candles D) A bullish candle followed by two doji candles Answer: B) Three bearish candlesticks 9. What is the meaning of the “piercing line” pattern? A) A continuation of the bearish trend B) A reversal from a bearish trend to a bullish trend C) Indecision in the market D) An indication of high volatility Answer: B) A reversal from a bearish trend to a bullish trend 10. Which candlestick pattern consists of a large bullish candle followed by a small bearish candle and indicates a continuation of the trend? A) Bearish engulfing B) Bullish harami C) Rising three methods D) Evening star Answer: C) Rising three methods
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