Study Guide for Technical Analysis Explained Fifth Edition, 5th Edition

16

CANDLESTICK CHARTING

Questions

Subjects to Be Covered

Candle construction

Differentiating between and recognizing the various patterns

Advantages of candlestick volume charts

1. Candlestick charts consist of:

A. Opening bars

B. Closing bars

C. A real body

D. Two wicks

E. A and C

F. C and D

2. If I only have price data for the high, low, and close, which patterns will not show up correctly in candlestick charts?

A. Engulfing patterns

B. Dojis

C. Meeting lines

D. All of the above

3. Fill in the blanks: In candlestick charting, the greatest emphasis is placed on the o_____ and c_____ price.

4. What is the shaded candlestick pattern in the following chart?

A. A bearish engulfing

B. A piercing line

C. Dark cloud cover

D. None of the above

5.