Reading Charts & Technical Analysis: Course Quiz

Course quiz

1. Which timeframe combination reads context first?

   Enter on the daily, check the five-minute Check the daily, enter on the hourly Only use the one-minute chart
2. Which chart type shows only the closing price of each period?

   Candlestick Bar Line
3. A candle has a small body near its high and a long lower wick, after a decline. What does it suggest?

   Sellers are in control Sellers pushed lower and were rejected; buyers may be returning Nothing
4. Price has made higher highs and higher lows for weeks, then breaks below the most recent swing low. What has happened?

   The uptrend continues The uptrend's structure is broken A range has formed
5. Price spikes above a range ceiling and closes back inside the range on the same candle. What is this?

   A confirmed breakout A false breakout A new uptrend
6. Resistance at 1.2500 breaks and price rallies. On the next pullback to 1.2500, what would you expect?

   The level to act as support The level to be ignored The level to act as resistance again
7. A head and shoulders pattern is confirmed when:

   The head forms Price breaks below the neckline The right shoulder is higher than the left
8. Price is below a falling 200-day moving average. What does a trend filter based on it say?

   Look for longs Look for shorts Stay out of the market entirely
9. In a strong uptrend, RSI has been above 70 for two weeks. What is the sensible reading?

   Sell immediately; it is overbought Momentum is strong; wait for a pullback to buy The indicator is broken
10. The MACD histogram is shrinking while you are long. What does that suggest?

    Momentum is accelerating Upward momentum is fading; consider tightening the stop The trend has reversed
11. Daily ATR on GBP/USD is 90 pips. A trader places a 15-pip stop on a daily chart trade. What is likely to happen?

    The stop is well placed Ordinary daily movement will probably hit the stop The trade has no risk
12. Yesterday's high was 1.1080, low 1.1000, close 1.1050. What is today's standard pivot?

    1.1040 1.1043 1.1050
13. Which set shows genuine confluence?

    RSI, MACD and stochastic all oversold Daily uptrend, price at a prior swing low that matches a 50 percent retracement, hammer candle Three moving averages of different lengths
14. Why does adding a fourth oscillator not strengthen a signal?

    Oscillators are illegal in some countries It is built from the same prices as the others and agrees by construction Platforms limit indicators to three
15. An uptrend is defined by:

    Rising RSI Higher highs and higher lows Price above the upper Bollinger Band
16. Which indicator gives you a number to set a stop distance from?

    MACD RSI ATR
17. Broken resistance most often becomes:

    Stronger resistance Support Irrelevant