Swing Trading & Chart Patterns Quiz

What is the primary function of chart patterns?

• They are the sole indicators for making trades

• They provide a framework to analyze the battle between buyers and sellers

• They ensure a trade will be profitable

• They guarantee trend continuation

Calls or Puts?

• Calls

• Puts

• No Action

Answer explanation

What is a key characteristic of a Rising Wedge pattern?

• It starts with narrow trading ranges and expands as the trend continues

• Both trend lines slope upward and the pattern is typically a bullish reversal signal

• It is a series of lower lows and lower highs, indicating a bearish continuation

• It is a bearish reversal pattern with both trend lines sloping upward, leading to a collapse in price through the lower trend line

Calls or Puts?

• Calls

• Puts

• No Action

Answer explanation

Calls or Puts

• Calls

• Puts

• No Action

Answer explanation

What distinguishes a Head and Shoulders pattern from a Double Top pattern?

• The Head and Shoulders pattern is only found in downtrends

• The Head and Shoulders pattern has three peaks, with the middle peak being the highest

• The Double Top pattern always leads to an uptrend

• The Head and Shoulders pattern is a bullish continuation pattern

Calls or Puts

• Calls

• Puts

• No Action

Answer explanation

Calls or Puts?

• Calls

• Puts

• No Action

Answer explanation

Calls or Puts?

• Calls

• Puts

• No Action

Answer explanation

Calls or Puts?

• Calls

• Puts

• No Action

Answer explanation