Day Trading Chart Patterns

Question 1

What is a 'breakout' in day trading?

Accepted Answer

When the price moves beyond a defined support or resistance level with increased volume

Answer

When a stock price drops to zero

Answer

When the market opens

Answer

When you exit a trade

Question 2

What is a 'double bottom' pattern?

Accepted Answer

A bullish reversal pattern where price bounces from the same support level twice, forming a W shape

Answer

Two consecutive losing trades

Answer

A chart with two timeframes

Answer

Two consecutive red candles

Question 3

What is a 'gap' in stock charts?

Accepted Answer

A space between the close of one candle and the open of the next, where no trading occurred

Answer

A store that sells clothing

Answer

An error in the chart

Answer

A pause in trading

Question 4

What is the VWAP (Volume Weighted Average Price)?

Accepted Answer

The average price weighted by volume throughout the trading day, used as a benchmark

Answer

A weather measurement

Answer

The highest price of the day

Answer

A type of trading platform

Question 5

What does a 'doji' candlestick indicate?

Accepted Answer

Indecision in the market, where the open and close prices are nearly equal

Answer

A strong bullish move

Answer

A bearish reversal

Answer

High trading volume

Question 6

What is a 'bull flag' pattern?

Accepted Answer

A continuation pattern where a brief consolidation follows a sharp upward move, before price continues higher

Answer

A flag with a bull on it

Answer

A reversal signal

Answer

A flag placed at market highs