Technical Analysis & Chart Patterns Flashcards
7 cards from real CPT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Technical Analysis & Chart Patterns flashcards as text
A rising wedge pattern that forms after a sustained uptrend typically signals what outcome?
Answer: Bearish reversal
A rising wedge in an uptrend is a bearish reversal pattern because converging trendlines show weakening buying pressure.
Which volume behavior is most typical during the formation of a symmetric triangle?
Answer: Volume contracts as the pattern develops
Volume typically contracts during a symmetrical triangle as traders await resolution of the indecision pattern.
The Fibonacci retracement level most commonly used as a 'golden ratio' support/resistance zone is:
Answer: 61.8%
The 61.8% level, derived from dividing a number by the next in the Fibonacci sequence, is known as the golden ratio.
In candlestick analysis, a 'doji' candle is best characterized by:
Answer: Open and close prices that are nearly equal
A doji has nearly identical open and close prices, forming a cross shape that signals market indecision.
When the MACD line crosses above the signal line, this event is interpreted as:
Answer: A bullish momentum signal
A MACD line crossing above the signal line is a classic bullish crossover indicating upward momentum is strengthening.
A 'cup and handle' pattern breakout target is typically calculated by:
Answer: Adding the cup depth to the breakout point
The measured move for a cup and handle is the depth of the cup added to the breakout price level.
Which candlestick pattern consists of three consecutive declining candles, each closing lower, and signals continued bearish momentum?
Answer: Three black crows
Three black crows is a bearish pattern of three consecutive long-bodied candles each closing at or near the session low.