8.1 Important Candlestick Types – part 1 – Quiz

1. What do all forex price indicators have in common? *

They are all derived from Japanese candlesticks

They are all derived from extremely complex calculations

They are all derived from calculations based on historical prices

2. Japanese candlesticks can be more predictive than technical indicators. *

TRUE

FALSE

3. The pin bar is best described as a candle: *

Withalargerealbodyclosetoeitheritshighorlow,andalongshadowthatsticksoutononeside.

Withasmallrealbodyclosetoeitheritshighorlow,andalsoasmallshadow

Withalargerealbodyandnoshadow

With a very small real body close to either its high or low ,and a long shadow that sticks out on one side.

4. A pin bar traditionally signifies an immediate move in price: *

In the opposite direction to the way the shadow is pointing.

In the same direction as the way the shadow is pointing.

5. An inside bar is best described as: *

A candle with a higher high and lower low than the previous candle

A candle with a lower high and higher low than the previous candle

A candle with a lower high and lower low than the previous candle

A candle with a higher high and higher low than the previous candle

6. An inside bar traditionally signifies: *

A breakout of the bar is likely to happen.

A period of price consolidation will follow

7. An outside bar is best described as: *

A candle with a lower high and lower low than the previous candle.

A candle with a higher high and higher low than the previous candle

A candle with a higher high and lower low than the previous candle.

A candle with a lower high and higher low than the previous candle

8. An outside bar closing near its high or low traditionally signifies: *

A combination of increasing volatility and indecision

A further move in the direction of the high or low it closes near.

A combination of decreasing volatility and increasing indecision

9. An outside bar closing near the middle of its range traditionally signifies: *

A combination of in creasing volatility and indecision

A combination of decreasing volatility and in creasing indecision

A strong break out will happen soon.

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