Candlestick Patterns Worksheet

What are the four key price points that make up a candlestick?

• Open, High, Low, Volume

• Open, High, Low, Close

• High, Low, Volume, Close

• Open, Close, Volume, Time

What does the "body" of a candlestick represent?

• The difference between high and low prices

• The difference between open and close prices

• The trading volume for that period

• The time duration of the trading session

In a bullish (green/white) candlestick, which price is higher?

• Open price is higher than close price

• Close price is higher than open price

• High price is always higher than volume

• Low price is higher than open price

What do the thin lines extending from the candlestick body represent?

• Trading volume

• Price volatility

• Upper and lower shadows (wicks)

• Market sentiment

A "doji" candlestick indicates:

• Strong bullish momentum

• Strong bearish momentum

• Market indecision

• High trading volume

A "hammer" candlestick pattern typically appears:

• At market tops as a bearish signal

• At market bottoms as a bullish reversal signal

• Only during high volume periods

• In the middle of strong trends

What characterizes a "shooting star" pattern?

• Long lower shadow, small body at top of range

• Long upper shadow, small body at bottom of range

• Large body with no shadows

• Equal upper and lower shadows

An "inverted hammer" appears at:

• Market tops as a bearish signal

• Market bottoms as a potential bullish reversal

• Only in uptrends

• During consolidation periods

How many candlesticks make up an "engulfing" pattern?

• One

• Two

• Three

• Four or more

In a bullish engulfing pattern:

• The first candle is bullish, second is bearish

• The first candle is bearish, second bullish candle engulfs it

• Both candles are the same color

• The pattern only works with doji candles