Beginner Quiz: Can You Read a Chart?

What is the primary purpose of a trading chart?

Which time frame is commonly used by day traders?

What does the “bid price” in trading represent?

What does “bullish market” mean?

Which of the following is NOT a type of financial asset?

Which candlestick pattern signals a potential reversal from a downtrend to an uptrend?

What does a long wick on the top of a candlestick suggest?

Which of the following is a bearish reversal candlestick pattern?

What does a Doji candlestick indicate?

Which pattern consists of three consecutive bullish candles?

What does a moving average help traders determine?

Which indicator is best used for measuring momentum?

When the RSI is above 70, what does it indicate?

Bollinger Bands are used to measure:

What does the MACD indicator primarily measure?

What is a stop-loss order used for?

What is a take-profit order?

Which of the following orders guarantees execution but not price?

What percentage of your trading capital is commonly recommended to risk per trade?

Leverage in trading allows you to:

What defines a downtrend in trading?

Which type of chart is most commonly used in trading?

What does increasing trade volume indicate?

What happens when a stock price reaches a resistance level?

Which event is likely to impact market sentiment the most?

Which psychological factor causes traders to hold onto losing trades for too long?

What is FOMO in trading?

A disciplined trader will:

Why do traders set daily loss limits?

What is the best mindset for long-term success in trading?