CMT Candlestick Analysis Flashcards
6 cards from real CMT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CMT Candlestick Analysis flashcards as text
A 'Harami' candlestick pattern occurs when:
Answer: The second candle's body is contained within the first candle's body
A Harami consists of a large candle followed by a smaller candle whose body fits entirely within the larger candle's body, suggesting a potential trend slowdown.
Which candlestick pattern is identified by a long lower shadow at least twice the length of the real body, appearing in a downtrend and signaling a potential reversal?
Answer: Hammer
The Hammer forms in a downtrend with a small real body and a long lower shadow, showing that buyers overcame selling pressure during the session.
A 'Dark Cloud Cover' pattern is most reliably used as:
Answer: A bearish reversal signal in an uptrend
Dark Cloud Cover forms when a bearish candle opens above the prior bullish candle's close and closes below its midpoint, suggesting a bearish reversal.
A 'Piercing Line' pattern in candlestick analysis signals:
Answer: Bullish reversal in a downtrend
The Piercing Line forms in a downtrend when a bullish candle opens below the prior bearish candle's low and closes above its midpoint, indicating buying pressure.
A 'Spinning Top' candlestick is characterized by:
Answer: A small body with upper and lower shadows of similar length
A Spinning Top has a small real body with roughly equal upper and lower shadows, reflecting market indecision as neither bulls nor bears dominated.
Which of the following best describes a 'Morning Star' candlestick pattern?
Answer: A three-candle bullish reversal with a small middle candle
The Morning Star is a three-candle bullish reversal pattern with a bearish candle, a small-bodied star candle (possibly with a gap), and a large bullish candle.