Candlestick & Chart Analysis Quiz

What does a long upper shadow (wick) on a candlestick usually suggest?

• Strong buying pressure that closed at the high

• Sellers pushed the price down after buyers drove it up

• Market stayed flat with no movement

• Buyers completely controlled the market

A Doji candlestick forms when the opening and closing prices are nearly the same, showing indecision in the market.

A candlestick pattern with a small body and a very long lower shadow, often seen after a downtrend, is called a __________.

Which vocabulary term refers to a price level where buying interest is strong enough to prevent the price from falling further?

• Resistance

• Breakout

• Support

• Reversal

Which candlestick pattern is often seen at the top of an uptrend and may signal a reversal downward?

• Hammer

• Shooting Star

• Bullish Engulfing

• Morning Star

When price repeatedly fails to rise above a certain level, that level is called __________.

What does it typically mean when price breaks above resistance with high volume?

• False signal, market is weak

• Strong bullish signal, buyers have control

• Market is undecided, no clear trend

• Sellers are preparing to enter the market

If a chart shows higher highs and higher lows, what does that tell you about the market trend?

Based on the image, what is the current trading price of McDonald's stock?

• $188.50

• $186.75

• $24.43

• $1.75

Stocks represent ownership in a corporation.

• TRUE
• FALSE