Question 1

Which of the following is true of the separating lines pattern?

Options :

A :

The top of the upper shadow of one candle is at the same price as the bottom of the lower shadow of the other candle

B :

The opening price of the second candle equals the opening price of the first candle

C :

The two candles have the same color

D :

It is a reversal pattern

Answer: B

Question 2

The "Rising 3 Methods" candlestick pattern is: I. Bullish II. Bearish III. Long White Body followed by a series of smaller falling candles IV. Long Black Body followed by a series of smaller rising candles

Options :

A :

I & III

B :

I & IV

C :

II & III

D :

II & IV

Answer: A

Question 3

This chart type integrates volume directly into the price bar:

Options :

A :

Equivolume

B :

VWOP

C :

Renko

D :

Ichimoku Cloud

Answer: A

Question 4

Counterattack lines are formed when:

Options :

A :

a doji breaks a moving average

B :

a dumpling top fails with an abandoned baby pattern

C :

when opposite colored candles have the same close

D :

When same-colored candles have the same close

Answer: C

Question 5

Which of the following are true of the concepts of divergence and confirmation in technical analysis

Options :

A :

They are opposite concepts

B :

Confirmation has a valid technical interpretation but in the case of divergence, no valid conclusion can be drawn

C :

Confirmation indicates a likely change in trend since all technical indicators are in agreement

D :

Divergence indicates continuation in trend since different technical indicators do not agree

Answer: A

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