Candlestick

Question 1

What is a candlestick

Answer 1

This is a type of price chart that shows the high, low, open and closing prices for a security for a specific period

Question 2

What is the wide part of the candle stick

Answer 2

This indicates whether the closing price was higher or lower than the higher price,

so the top and bottom can show both the opening and closing prices

Question 3

What do the little sticks (shadow) on a candlestick show

Answer 3

The highest and lowest price of the period shown

Question 4

What is a bullish hammer pattern

Answer 4

When the price falls at the open and then rallies close to the opening high of the day, looks like a hammer sorta lol

Question 5

What is the bearish hanging man

Answer 5

I think its the same as the fookin hammer but the close is the lower part of the main candlestick body

Question 6

What is the engulfing pattern and what does it suggest?

2 day candlestick pattern

Answer 6

the first candlestick has a small body that is completely engulfed by the second candlestick.

signals a potential trend reversal for both uptrends and downtrends

Question 7

What is the harami reversal pattern

2 day candlestick pattern

Answer 7

the second candlestick is entirely contained within the first candlestick and is opposite in color.

Question 8

What is the harami cross reversal
(can research more)
(2 day candlestick pattern)

Answer 8

When a candlestick is followed by a candlestick where the open and close are pretty much the same (doji)

Question 9

What is an evening star
(3 day candlestick pattern)
(can research more)

Answer 9

the first candlestick continues the uptrend. The second candlestick gaps up and has a short body. The third candlestick closes below the midpoint of the first candlestick.

bearish reversal pattern

Question 10

What is a morning star
(3 day canadlestick pattern)
(can research more)

Answer 10

the first candlestick is long and black/red-bodied, followed by short candlestick that has gapped lower; it is completed by a long-bodied white/green candlestick that closes above the midpoint of the first candlestick.

bullish reversal pattern

Question 11

What decides the colour of a candlestick

If green or red

Answer 11

Whether the close was higher of lower than the PREVIOUS candlestick