Japanese Candelstick

Question 1

If the close is above the open, then?

Answer 1

a hollow candlestick (usually displayed as white) is drawn.

Question 2

If the close is below the open, then?

Answer 2

a filled candlestick (usually displayed as black) is drawn.

Question 3

The hollow or filled section of the candlestick is called the?

Answer 3

“real body” or body.

Question 4

The thin lines poking above and below the body display the?

Answer 4

high/low range and are called shadows.

Question 5

The top of the upper shadow is the?

Answer 5

“high”.

Question 6

The bottom of the lower shadow is?

Answer 6

the “low”.

Question 7

The longer the white candlestick, the further the?

Answer 7

close is above the open.

Question 8

The longer the black Japanese candlestick, the?

Answer 8

further the close is below the open.

Question 9

Upper shadows signify the sessions?

Answer 9

high.

Question 10

Lower shadows signify the sessions?

Answer 10

low.

Question 11

If a Japanese candlestick has a long upper shadow and short lower shadow, this means that?

Answer 11

buyers flexed their muscles and bid prices higher.

Question 12

If a Japanese candlestick has a long lower shadow and short upper shadow, this means that?

Answer 12

sellers flashed their washboard abs and forced price lower. But for one reason or another, buyers came in and drove prices back up to end the session back near its open price.

Question 13

Japanese candlesticks with a long upper shadow, long lower shadow and small real bodies are called?

Answer 13

spinning tops.

Question 14

A spinning top indicates?

Answer 14

indecision between the buyers and sellers.

Question 15

If a spinning top forms during an uptrend, this usually means there aren’t many?

Answer 15

buyers left and a possible reversal in direction could occur.

Question 16

If a spinning top forms during a downtrend, this usually means there aren’t many?

Answer 16

sellers left and a possible reversal in direction could occur.

Question 17

Marubozu means there are?

Answer 17

no shadows from the bodies.

Question 18

A White Marubozu contains a long white body with no shadows. The open price equals?

Answer 18

the low price and the close price equals the high price.

Question 19

The White Marubozu is a very bullish candle as it shows that?

Answer 19

buyers were in control the entire session. It usually becomes the first part of a bullish continuation or a bullish reversal pattern.

Question 20

A Black Marubozu contains a long black body with no shadows. The open equals?

Answer 20

the high and the close equals the low.

Question 21

A Black Marubozu is a very bearish candle as it shows that sellers?

Answer 21

controlled the price action the entire session. It usually implies bearish continuation or bearish reversal.

Question 22

Doji candlesticks have the same?

Answer 22

open and close price or at least their bodies are extremely short. A doji should have a very small body that appears as a thin line.

Question 23

What are the four types of Doji’s?

Answer 23

the Long-Legged Doji, Dragonfly, Gravestone, Four Price.

Question 24

If a Doji forms after a series of candlesticks with long hollow bodies (like White Marubozus), the Doji signals that the?

Answer 24

buyers are becoming exhausted and weakening.

Question 25

If a Doji forms after a series of candlesticks with long filled bodies (like Black Marubozus), the Doji signals that?

Answer 25

sellers are becoming exhausted and weak.

Question 26

Hammer and Hanging Man both have?

Answer 26

long lower shadows, and short or absent upper shadows.

Question 27

The hammer is a?

Answer 27

bullish reversal pattern that forms during a downtrend. It is named because the market is hammering out a bottom.

Question 28

When price is falling, hammers signal that the?

Answer 28

bottom is near and price will start rising again.

Question 29

What is the recognition criteria for Hammer?

Answer 29

The long shadow is about two or three times of the real body. Little or no upper shadow. The real body is at the upper end of the trading range. The color of the real body is not important.

Question 30

The hanging man is a?

Answer 30

bearish reversal pattern that can also mark a top or strong resistance level.

Question 31

When price is rising, the formation of a hanging man indicates that?

Answer 31

sellers are beginning to outnumber buyers.

Question 32

What is the recognition criteria for the hanging man?

Answer 32

A long lower shadow which is about two or three times of the real body. Little or no upper shadow. The real body is at the upper end of the trading range. The color of the body is not important, though a black body is more bearish than a white body.

Question 33

An inverted hammer is a?

Answer 33

bullish reversal candlestick.

Question 34

A shooting star is a?

Answer 34

bearish reversal candlestick.

Question 35

The inverted hammer occurs when?

Answer 35

price has been falling suggests the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher.

Question 36

The shooting star is a bearish reversal pattern that looks identical to the inverted hammer but occurs when?

Answer 36

price has been rising.

Question 37

The bullish engulfing pattern is a two candlestick pattern that

Answer 37

signals a strong up move may be coming. It happens when a bearish candle is immediately followed by a larger bullish candle

Question 38

The bearish engulfing pattern is the opposite of the bullish pattern. This type of candlestick pattern occurs when?

Answer 38

the bullish candle is immediately followed by a bearish candle that completely “engulfs” it.

Question 39

The tweezers are dual candlestick reversal patterns. This type of candlestick pattern are usually be spotted after an?

Answer 39

extended uptrend or downtrend, indicating that a reversal will soon occur. Notice how the candlestick formation looks just like a pair of tweezers!

Question 40

The morning star and the evening star are triple candlestick patterns that you can usually find at?

Answer 40

the end of a trend.

Question 41

The three white soldiers pattern is formed when?

Answer 41

three long bullish candles follow a DOWNTREND, signaling a reversal has occurred.

Question 42

The three black crows candlestick pattern is just the opposite of the three white soldiers. It is formed when?

Answer 42

three bearish candles follow a strong UPTREND, indicating that a reversal is in the works. The second candle’s body should be bigger than the first candle and should close at or very near its low.

Finally, the third candle should be the same size or larger than the second candle’s body with a very short or no lower shadow.

Question 43

The three inside up candlestick formation is a trend-reversal pattern that is found?

Answer 43

at the bottom of a DOWNTREND.

Question 44

The three inside up triple candlestick pattern indicates that the?

Answer 44

downtrend is possibly over and that a new uptrend has started.

Question 45

For a valid three inside up candlestick formation, look for?

Answer 45

The first candle should be found at the bottom of a downtrend and is characterized by a long bearish candlestick. The second candle should at least make it up all the way up to the midpoint of the first candle. The third candlestick needs to close above the first candle’s high to confirm that buyers have overpowered the strength of the downtrend.

Question 46

the three inside down candlestick formation is found at the top of an UPTREND It means that the?

Answer 46

uptrend is possibly over and that a new downtrend has started.

Question 47

A three inside down candlestick formation needs to have the following?

Answer 47

The first candle should be found at the top of an uptrend and is characterized by a long bullish candlestick. The second candle should make it up all the way down the midpoint of the first candle. The third candlestick needs to close below the first candle’s low to confirm that sellers have overpowered the strength of the uptrend.