Market structure quiz

1. What is a timeframe?

1. The number of candles on the screen
2. How long you hold a trade
3. The time of day you trade
4. How much time each candle covers

2. Which timeframe shows the biggest picture?

1. Weekly
2. 1-hour
3. 5-minute
4. 1-minute

3. What do hourly candles build when you zoom out?

1. Minute candles
2. Daily candles
3. A second chart of the same hour
4. Nothing at all

4. Which picture fits timeframes best?

1. Zooming a map in and out
2. A tug of war
3. A car race
4. A spinning top

5. In a market that trades around the clock, how many hourly candles make one daily candle?

1. 60
2. 12
3. 24
4. 7

6. Hourly candles show a sharp fall, but the daily chart is in a clear uptrend. What is the best reading?

1. The hourly chart is wrong
2. Timeframes never disagree
3. The fall may be a small pullback inside the bigger uptrend
4. The daily uptrend must be over

7. Which timeframe usually shows more noise?

1. Daily
2. Monthly
3. 5-minute
4. Weekly

8. In a market that trades around the clock, how many hourly candles fit in one week?

1. 24
2. 120
3. 7
4. 168

9. Four hourly candles: the first opens at 50, their highs are 53, 56, 55 and 52, their lows are 49, 51, 50 and 48, and the last closes at 51. What is the 4-hour candle?

1. Open 50, high 53, low 49, close 51
2. Open 50, high 52, low 48, close 51
3. Open 51, high 56, low 48, close 50
4. Open 50, high 56, low 48, close 51

10. Why is dropping to a smaller timeframe just to find a trade a mistake?

1. Smaller charts are always wrong
2. Smaller charts show more noise, so you can always find a signal that means little
3. It breaks exchange rules
4. Smaller charts have no candles

11. What makes an uptrend?

1. Higher highs and higher lows
2. Lower highs and lower lows
3. A flat line
4. One big green candle

12. What makes a downtrend?

1. Lower highs and lower lows
2. One red candle
3. Equal highs and lows
4. Higher highs and higher lows

13. What is a sideways market?

1. Price makes lower lows
2. The market is closed
3. Price makes higher highs
4. Price keeps turning inside the same band

14. Which picture fits an uptrend?

1. A flat floor
2. A spinning top
3. Stairs going up
4. A ball rolling downhill

15. Swing highs of 50, 48 and 45 and swing lows of 44, 41 and 38. What is the trend?

1. You cannot tell
2. Downtrend
3. Sideways
4. Uptrend

16. Swing highs of 60, 61 and 60 and swing lows of 55, 54 and 55. What is the trend?

1. A strong breakout
2. Downtrend
3. Sideways
4. Uptrend

17. Why is one big green candle not enough to call an uptrend?

1. One candle always means a downtrend
2. Uptrends need red candles only
3. Green candles never matter
4. A trend needs a pattern of several highs and lows

18. Swing highs of 105, 112 and 118. By how much did the highs rise from the first to the third?

1. 7
2. 6
3. 118
4. 13

19. The daily chart shows higher highs and higher lows, but the 1-hour chart is moving sideways. Which is true?

1. Only the hourly chart matters
2. There is no trend anywhere
3. The market is up on the daily chart and sideways on the hourly chart
4. The daily trend must be wrong

20. Why do many traders skip trades in sideways markets when they use trend tools?

1. Sideways markets are closed
2. Trend tools tend to give false signals when price has no direction
3. Sideways markets have no candles
4. Trend tools never work

21. What is a swing high?

1. The first candle of the day
2. Any green candle
3. A valley with higher lows on both sides
4. A peak with lower highs on both sides

22. What is a swing low?

1. A peak with lower highs on both sides
2. The last candle on the chart
3. Any red candle
4. A valley with higher lows on both sides

23. What are swing points used for?

1. Choosing candle colors
2. Reading trends, support, resistance and patterns
3. Setting the time zone
4. Counting volume

24. Which picture fits swing highs and lows?

1. A flat table
2. Hilltops and valleys on a walk
3. A straight road
4. A clock face

25. Highs of 30, 33, 37, 34 and 31. Is the middle candle a swing high, using two candles on each side?

1. Yes, 37 is above both neighbours on each side
2. No, 37 is below 33
3. You can never tell
4. No, it needs to be green

26. Why does a swing point always appear a little late?

1. It is confirmed only after the candles to its right close
2. Swing points are drawn the next week
3. It needs a news release
4. Charts are always delayed

27. What is the most common beginner mistake with swing points?

1. Marking too few candles on purpose
2. Using candles at all
3. Marking every tiny wiggle
4. Looking at highs

28. Using two candles on each side, how many candles does a swing high check need in total?

1. 4
2. 2
3. 5
4. 3

29. Lows of 20, 18, 15, 16 and 14. Is the middle candle a swing low, using two candles on each side?

1. Yes, 15 is the lowest of the first three
2. No, swing lows must be green
3. Yes, any low is a swing low
4. No, the last low of 14 is lower than 15

30. A trader marks swing points from a 5-minute chart onto a daily chart. What is the problem?

1. Nothing, all swing points are the same
2. The points belong to a much smaller timeframe and create false structure
3. 5-minute charts have no highs
4. Daily charts cannot show swing points

31. Where do you draw an uptrend line?

1. Through the middle of every candle
2. Under rising swing lows
3. Along the volume bars
4. Over falling swing highs

32. Where do you draw a downtrend line?

1. Through random points
2. Under rising swing lows
3. Across the chart title
4. Over falling swing highs

33. How many points do you need to draw a line?

1. Two
2. One
3. None
4. Ten

34. What makes traders trust a trendline more?

1. Drawing it thicker
2. A steeper angle
3. A red candle
4. A third touch that holds

35. A line rises from 100 on day 1 to 110 on day 11. How much does it rise per day?

1. 11
2. 10
3. 1
4. 0.5

36. What often happens after a very steep trendline breaks?

1. Price always crashes
2. The trend doubles in speed
3. Nothing can happen
4. The trend slows down rather than reversing

37. Which trendline is drawn wrong?

1. A line forced through candle bodies to fit an idea
2. A line through three clean swing lows
3. A line over falling swing highs
4. A line with two clear touches

38. A line rises 1 per day from 100 on day 1. Where is it on day 21?

1. 110
2. 100
3. 120
4. 121

39. Price closes below a gentle uptrend line that had three touches. What is the most careful reading?

1. The line never mattered
2. The trend may be slowing, so wait to see the next swing
3. Redraw the line so it is not broken
4. A new downtrend is certain

40. Why do experts treat a trendline as a zone?

1. Lines cannot be drawn
2. Price often pokes slightly through a line before holding
3. Zones are always green
4. Charts have no exact prices

41. What is a gap on a chart?

1. Two candles of the same color
2. A candle with a long wick
3. A very small candle
4. Empty space where no trading happened between two candles

42. What is a gap up?

1. A candle with no volume
2. A candle whose low is above the previous candle's high
3. A candle that closes higher than it opens
4. Any green candle

43. What is a gap down?

1. Any red candle
2. A candle that opens lower and closes higher
3. A candle whose high is below the previous candle's low
4. A long lower wick

44. Why do stocks often gap?

1. News can arrive while the market is closed
2. Charts have errors
3. Brokers add gaps
4. Stocks trade every minute of every day

45. Why do 24/7 crypto spot charts rarely gap?

1. Crypto has no news
2. Gaps are banned
3. They never close, so price trades through every level
4. Crypto charts hide gaps

46. A stock opens above yesterday's high, then falls back into yesterday's range. Is it a true gap?

1. No, the empty space was filled the same day
2. Yes, a gap up
3. Only if volume is high
4. Yes, any higher open is a gap

47. When can forex charts gap?

1. Never
2. Over the weekend, when the market is closed
3. Every hour
4. Only at lunchtime

48. Yesterday's high was 100 and today's low is 104. How big is the gap up?

1. 8
2. 104
3. 100
4. 4

49. Today closed at 107 after a gap up from a previous high of 100. How far must price fall to fill the gap?

1. 7
2. 107
3. 3
4. 4

50. Yesterday's low was 96 and today's high is 93. What happened?

1. A gap up of 3
2. A gap down of 93
3. A gap down of 3
4. No gap

51. Where do common gaps usually appear?

1. Only on crypto charts
2. Inside a sideways range
3. Right after a long trend ends
4. At the very start of a big new trend

52. What is a breakaway gap?

1. A gap that jumps out of a range
2. A candle with no wicks
3. A gap that always fills the same day
4. A gap in the middle of a trend

53. What is an exhaustion gap?

1. A gap inside a range
2. A gap at the start of a move
3. A gap with no volume ever
4. A gap late in a long move

54. What does it mean when a gap is filled?

1. Volume falls to zero
2. The market closes
3. Price jumps even higher
4. Price trades back across the empty space

55. A gap appears halfway through a strong uptrend. Which type is it most likely?

1. Breakaway
2. Exhaustion
3. Runaway
4. Common

56. What often supports a breakaway gap?

1. A tiny candle with no volume
2. A gap inside the range
3. Heavy volume as price leaves the range
4. A holiday

57. Why can't you always name a gap's type on the day it happens?

1. The type often becomes clear only from what happens next
2. Gaps have no types
3. Only experts can see gaps
4. Charts hide gaps

58. The high before the gap was 100 and the gap day's low is 104. How big is the gap?

1. 204
2. 4
3. 104
4. 100

59. Price closed at 108 after a gap up from a high of 100. How far must it fall to fill the gap?

1. 4
2. 108
3. 8
4. 100

60. After a 40-day rally, a stock gaps up and within two days falls back to fill the gap. Which type fits best?

1. Runaway
2. Breakaway
3. Common gap inside a range
4. Exhaustion

61. What is often the first warning that an uptrend is weakening?

1. A small candle appears anywhere
2. Price makes a bigger higher high
3. Volume rises on green candles
4. Price fails to make a new higher high

62. What is a break of structure in an uptrend?

1. A close below the most recent higher low
2. Any red candle
3. A close above the last high
4. A gap up

63. What is the mirror clue at the end of a downtrend?

1. A lower low
2. A gap down
3. A higher low, then a close above the latest lower high
4. A long red candle

64. Which picture fits a trend change?

1. A rocket that keeps flying
2. A flat floor
3. Stairs that stop rising, then a step gives way
4. A box inside a box

65. After a break of structure, what can price do next?

1. Stop trading forever
2. Only start a new opposite trend at once
3. Start a new trend or move sideways for a while
4. Only return to the old trend

66. Why use a close rather than a quick poke to confirm the break?

1. A close shows price held below the level
2. Closes do not matter
3. Candles cannot close below levels
4. Pokes are always true breaks

67. A break of structure on the weekly chart or on the 15-minute chart: which matters more for the big trend?

1. The weekly chart
2. The 15-minute chart
3. Neither ever matters
4. They matter equally

68. The high was 200 and the next rally stopped at 196. How far below the high is the lower high?

1. 200
2. 8
3. 196
4. 4

69. The last higher low is 180 and a candle closes at 176. How far below the level did it close?

1. 176
2. 4
3. 180
4. 2

70. Price breaks the last higher low, rallies back to that level and turns down. What does that add?

1. Proof that the uptrend is back
2. A failed retest, which adds weight to the break
3. A reason to redraw the old trendline
4. Nothing at all