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 position trading? Trading every second Holding trades for weeks to months based on larger trends Using no analysis Only buying meme coins 2. What does RSI commonly measure? Broker fees Dividend yield only Company revenue Momentum and overbought or oversold conditions 3. What is relative volume? A stock split A dividend payment Current volume compared to normal volume A broker fee 4. What is resistance? A market order A price area where sellers may step in A broker fee A dividend payment 5. What is a watchlist? A broker fee A trading password A list of assets a trader is monitoring A tax form 6. Why is a trading plan important? It guarantees profits It replaces education It removes losses It reduces emotional decisions and creates structure 7. Why is volume important during breakouts? Volume removes stop losses Volume stops volatility Volume guarantees profit Higher volume can confirm stronger participation 8. Using the image, what candlestick pattern is shown in image #1? Bear Flag Hammer Candle Shooting Star Doji 9. What does consistency mean in trading? Risking randomly Changing strategy daily Following a repeatable process over time Winning every trade 10. What happens when resistance breaks? It always crashes Trading stops It can become new support It becomes a tax level 11. What is a breakout? A broker password Price moving beyond support or resistance A tax refund Price staying flat 12. Using the image, what is shown in image #17? Liquidity sweep Entry example Bearish reversal Exit example 13. What is risk-to-reward ratio? The number of trades per month A stock dividend A crypto fee The comparison between potential loss and potential gain 14. What is support? A price area where buyers may step in A tax form A broker support chat A market holiday 15. Why is discipline important? It helps traders follow their plan and manage risk It removes market risk It guarantees every trade wins It replaces education 16. What is a downtrend? Higher highs and higher lows No market activity Lower highs and lower lows Only green candles 17. What is chasing a trade? Following a written plan Waiting for confirmation Reducing risk Entering late after price has already moved far 18. What is risk management? Protecting capital by controlling losses Trying to win every trade Using maximum leverage Ignoring stop losses 19. What is a stop loss? A broker bonus A guaranteed profit tool An order or level used to limit losses A dividend payment 20. What is VWAP often used for? A crypto wallet A benchmark showing average price weighted by volume A dividend formula A tax deduction 21. What is the candle body? The area between open and close The lowest price only The broker fee The highest price only 22. Using the image, what does the descending triangle in image #8 usually suggest? Bullish breakout potential Guaranteed reversal Sideways movement only Bearish breakout potential 23. What is an uptrend? Lower highs and lower lows No price movement Higher highs and higher lows Only red candles 24. Using the image, what does the shooting star pattern in image #2 typically suggest? Potential bearish reversal Guaranteed breakout Bullish continuation Sideways market 25. Using the image, what does the support bounce in image #12 suggest? Guaranteed breakout Buyers defended support No market activity Sellers gained control Submit Test