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Candlesticks quiz

20 questions with answers, from the candlesticks lessons. Answer in your head, then open the answer.

1. What four prices does every candle show?

  1. Buy, sell, stop and target
  2. Open, high, low and close
  3. Volume, trend, news and time
  4. Monday, Tuesday, Wednesday and Thursday
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Open, high, low and close. These four prices are called OHLC. Lesson ›

2. What does the body of a candle show?

  1. The highest price only
  2. The number of trades
  3. Tomorrow's price
  4. The distance between the open and the close
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The distance between the open and the close. The body runs from the open to the close. Lesson ›

3. What do the wicks show?

  1. A trend line
  2. The volume
  3. The highest and lowest prices of the period
  4. The open and the close
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The highest and lowest prices of the period. The wicks reach the extremes of the period. Lesson ›

4. What does a green candle mean?

  1. It closed above its own open
  2. Price will rise next
  3. It had no wicks
  4. Price is higher than last week
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It closed above its own open. Color compares the close with this candle's own open. Lesson ›

5. A candle opens at 50 and closes at 45. What color is it?

  1. Green
  2. Blue
  3. Red
  4. It has no color
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Red. The close is below the open, so the candle is red. Lesson ›

6. A candle's high is 80 and its low is 70. What is its range?

  1. 10
  2. 150
  3. 80
  4. 70
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10. The range is the high minus the low. Lesson ›

7. Where is the open on a red candle?

  1. At the bottom of the body
  2. At the tip of the lower wick
  3. At the tip of the upper wick
  4. At the top of the body
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At the top of the body. A red candle closed lower, so it opened at the top of its body. Lesson ›

8. A green candle has open 20, high 26, low 18 and close 24. How long is its upper wick?

  1. 8
  2. 2
  3. 6
  4. 4
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2. The upper wick runs from the close at 24 to the high at 26. Lesson ›

9. Can a green candle close lower than the previous candle's close?

  1. Yes, if it opened even lower and then rose
  2. Only on weekly charts
  3. No, green always means higher than yesterday
  4. No, a green candle never follows a red one
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Yes, if it opened even lower and then rose. Color only compares this candle's close with its own open. Lesson ›

10. Two candles have exactly the same open, high, low and close. What do you know about the path price took inside each?

  1. Both rose in a straight line
  2. Neither had any trades
  3. Nothing for sure, because different paths can make the same candle
  4. The paths were identical
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Nothing for sure, because different paths can make the same candle. A candle records four prices, not every move between them. Lesson ›

11. What does a big body usually mean?

  1. Price will surely keep going
  2. One side stayed in control for the period
  3. The market was closed
  4. Nobody traded
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One side stayed in control for the period. Price travelled far from the open to the close. Lesson ›

12. What does a long upper wick show?

  1. Buyers won easily
  2. Price never went up
  3. Price went up but was pushed back down
  4. The candle had no range
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Price went up but was pushed back down. The wick marks a level price reached but could not keep. Lesson ›

13. A small body with long wicks on both sides shows what?

  1. A close fight with no clear winner
  2. Buyers won big
  3. No trading happened
  4. Sellers won big
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A close fight with no clear winner. Both sides pushed hard and neither held the ground. Lesson ›

14. Which picture fits bodies and wicks best?

  1. A ball that never lands
  2. A clock on the wall
  3. A tug of war between buyers and sellers
  4. A car parked in a garage
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A tug of war between buyers and sellers. Each candle is the result of a push and a pull. Lesson ›

15. A candle's range is 20 and it closes just 2 below its high. Who finished stronger?

  1. Buyers, because the close is near the top
  2. Sellers, because the close is near the bottom
  3. Nobody, the close is in the middle
  4. You cannot tell anything
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Buyers, because the close is near the top. A close near the high shows buyers ended in control. Lesson ›

16. Which candle shows sellers winning most clearly?

  1. A green candle closing near its high
  2. A cross-shaped candle with equal wicks
  3. A small green body with long wicks
  4. A long red body closing near its low
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A long red body closing near its low. A long red body closing at the bottom shows sellers controlled the period. Lesson ›

17. Where does a long wick matter most to traders?

  1. In the middle of a quiet range
  2. At a level that stopped price before
  3. Wherever the candle is green
  4. On the first candle of any chart
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At a level that stopped price before. A rejection at a known level adds more to the story. Lesson ›

18. A candle has open 30, high 40, low 28 and close 31. How long is the upper wick?

  1. 9
  2. 1
  3. 12
  4. 10
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9. The upper wick runs from the close at 31 up to the high at 40. Lesson ›

19. A candle has high 100, low 80 and close 85. What fraction of the way up the range is the close?

  1. 0.5
  2. 0.25
  3. 0.85
  4. 0.75
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0.25. (85 minus 80) divided by 20 is 0.25, so it closed in the bottom quarter. Lesson ›

20. Why should one candle not be read as a forecast?

  1. Candles only show volume
  2. Candles are always wrong
  3. Only green candles can be forecasts
  4. It records one period's fight, and the next period can be different
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It records one period's fight, and the next period can be different. Traders read candles together with the trend and nearby levels. Lesson ›