Trading Patterns Quiz

What does a Pennant Channel usually indicate after a strong move?

• A reversal is likely

• A sideways market for a long time

• A continuation after a brief pause

• The trend is ending permanently

Which pattern typically has the highest success rate when confirmed properly?

• Pennant

• Double Bottom

• Head and Shoulders

• Triangle

In a Rising Wedge, what does the pattern usually suggest?

• Bullish reversal

• Bullish continuation

• Bearish reversal

• Indecision

What confirms a Double Top pattern?

• RSI divergence at the first peak

• Price breaks above the neckline

• Price fails to reach resistance once

• Price breaks below the neckline with volume

What is the main difference between Ascending and Descending Triangles?

• The volume behavior

• The shape of candlesticks

• One has flat resistance, the other flat support

• Their success rate

A Double Bottom forms when price breaks a support level twice.

In a Head and Shoulders pattern, the 'head' is the highest peak.

A Falling Wedge is a bearish continuation pattern.

Triple Tops and Bottoms show stronger reversal signals than Double Tops and Bottoms.

Volume should usually increase during the wedge formation phase.