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 confirmation in trading? A broker bonus Additional evidence supporting a trade idea A guaranteed result A tax receipt 2. What is a pullback? A trading password A broker fee A temporary move against the main trend A permanent market crash 3. What is position sizing? Setting a password Choosing chart colors Picking a broker logo Deciding how much capital to risk on a trade 4. What is a triangle pattern? A broker rule A tax form A dividend chart A consolidation pattern where price tightens before a possible breakout 5. What is the candle body? The lowest price only The area between open and close The highest price only The broker fee 6. What is overtrading? Reducing risk Taking only planned trades Taking too many trades without quality setups Trading with discipline 7. Why should traders wait for good entries? It removes losses It avoids all volatility It guarantees profit Better entries can improve risk-to-reward 8. What is volume? A broker password A dividend amount The number of shares, contracts, or units traded during a period A tax refund 9. What is position trading? Holding trades for weeks to months based on larger trends Only buying meme coins Trading every second Using no analysis 10. Using the image, what does the descending triangle in image #8 usually suggest? Bullish breakout potential Guaranteed reversal Bearish breakout potential Sideways movement only 11. What should a trader do after multiple emotional losses? Trade bigger immediately Ignore the losses Pause, review, and reduce risk before continuing Increase leverage 12. What does a red candle usually mean? The broker froze trading A dividend was paid Price closed lower than it opened Price closed higher than it opened 13. What is a bullish engulfing candle? A guaranteed profit A tax signal A broker warning A strong bullish candle that covers the previous bearish candle body 14. Using the image, what pattern is shown in image #23? Shooting Star Double Bottom Bear Flag Head and Shoulders 15. Using the image, what does the bearish engulfing pattern in image #4 usually indicate? Buyers taking control Guaranteed rally Sideways movement Sellers taking control 16. Using the image, what is the key lesson in image #35? Trading without a plan Ignoring risk management Proper stop loss placement below swing low Random entries 17. Using the image, what does image #15 primarily illustrate? Double top Liquidity sweep Risk-to-reward setup EMA crossover 18. What is an EMA? Earnings management average Estimated market account Exchange margin alert Exponential moving average that gives more weight to recent prices 19. Using the image, what does the resistance rejection in image #13 suggest? Guaranteed collapse Buyers gained full control No volatility Sellers defended resistance 20. What is multi-timeframe analysis? Avoiding charts Using only news Using more than one timeframe to understand market context Trading only one candle 21. What is a double top? A guaranteed breakout A dividend pattern A bullish continuation only A potential bearish reversal pattern near resistance 22. What are LEAPS? Long-term options contracts with expirations far in the future Same-day trades Forex sessions Crypto wallets 23. Using the image, where is the stop loss placed in image #16? Below the support or swing low Above resistance Randomly At the exact entry 24. What is a bull flag? A broker warning A market holiday A bullish continuation pattern after a strong move up A bearish reversal only 25. What is a retest? Price returning to a broken level to test it again A dividend update A second exam only A tax correction Submit Test