Trading Test Trading Knowledge Test Instructions: Answer 25 randomly selected questions from the full Trading question bank. Each question is worth 4 points. Total score: 100 points. Attempt Limit: You may take this test up to 3 times using the same email address. Student Name Student Email 1. What is chasing a trade? Waiting for confirmation Reducing risk Entering late after price has already moved far Following a written plan 2. What happens when support breaks? It closes the market It guarantees profit It can become new resistance It always becomes bullish 3. What is a candlestick chart? A chart showing open, high, low, and close prices A bank statement A dividend calendar A tax form 4. What does RSI commonly measure? Broker fees Momentum and overbought or oversold conditions Company revenue Dividend yield only 5. Using the image, what is shown in image #25? Cup and Handle Bullish reversal pattern Bear Flag continuation pattern EMA crossover 6. What can a long lower wick suggest? A broker fee Guaranteed bearish continuation No buyers Buying pressure near the low 7. Using the image, what does the descending triangle in image #8 usually suggest? Guaranteed reversal Bullish breakout potential Sideways movement only Bearish breakout potential 8. What is a bull flag? A market holiday A bullish continuation pattern after a strong move up A broker warning A bearish reversal only 9. Why should traders review higher timeframes? To guarantee profits To understand the bigger trend and key levels To remove risk To avoid planning 10. Using the image, what does image #27 illustrate? Supply Zone Head and Shoulders Descending Triangle Demand Zone 11. Using the image, what does image #15 primarily illustrate? Risk-to-reward setup EMA crossover Double top Liquidity sweep 12. Why is a trading plan important? It removes losses It guarantees profits It reduces emotional decisions and creates structure It replaces education 13. What is a double bottom? A dividend pattern A potential bullish reversal pattern near support A broker fee A guaranteed crash 14. What is a bearish engulfing candle? A guaranteed short A broker error A strong bearish candle that covers the previous bullish candle body A dividend signal 15. What is support? A broker support chat A tax form A price area where buyers may step in A market holiday 16. Why should traders review losing trades? To increase revenge trading To ignore risk To learn from mistakes and improve strategy To feel worse only 17. What is the best description of professional trading? A disciplined process focused on risk, strategy, execution, and review A guaranteed income system A way to avoid losses Random guessing with charts 18. Using the image, what does the support bounce in image #12 suggest? Sellers gained control Guaranteed breakout No market activity Buyers defended support 19. What is an EMA? Earnings management average Exchange margin alert Estimated market account Exponential moving average that gives more weight to recent prices 20. What is a continuation setup? A setup expecting the current trend to continue A guaranteed profit A market holiday A setup expecting no movement 21. Using the image, what does the trendline in image #20 indicate? Bullish breakout Downtrend resistance Support bounce Double bottom 22. What is position sizing? Deciding how much capital to risk on a trade Setting a password Choosing chart colors Picking a broker logo 23. What does a 1:3 risk-to-reward ratio mean? Guaranteed 3 wins Risking $3 to make $1 Trading 3 times daily Risking $1 to potentially make $3 24. What is the 1–2% risk rule? Using 100% of capital Risking only 1–2% of account capital on a single trade Guaranteeing 2% daily profit Making 1–2 trades per year 25. Using the image, what market structure is shown in image #30? Ascending triangle Bearish structure with lower highs and lower lows Support bounce Bullish continuation Submit Test