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Questions and Answers
Heikin-Ashi charts were developed by Masahiro Homma in the 1800s.
False
Decisive Candles are bearish when there is no lower wick (leg).
False
Heikin-Ashi candles help traders overcome the Physical barrier.
False
A strong buy/sell signal is when HA changes color after a neutral candle at some support/resistance.
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According to the content, the Bullish Bandish Group Of Traders is associated with Indecisive candles.
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Bollinger Bands consist of a moving average and two standard deviation lines below it.
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The Directional Movement Index (DMI) only consists of two indicators: Positive Directional Indicator and Negative Directional Indicator.
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A Doji is a type of candlestick pattern representing indecision in the market.
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The Three White Soldiers pattern is typically a bearish reversal pattern.
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A Dark Cloud Cover is a bullish candlestick pattern.
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Study Notes
Heikin-Ashi Charts
- Developed by Munehisa Homma in the 1700s
- Help traders overcome psychological barriers due to their special formation method
Heikin-Ashi Candle Types
- Bullish: no lower wick (leg)
- Bearish: no upper wick (leg)
- Indecisive: wicks on both sides
Heikin-Ashi Signals
- Buy signal: HA changes color without giving a neutral candle at support/resistance
- Sell signal: HA changes color without giving a neutral candle at support/resistance
Candlestick Patterns
- Bullish: Three White Soldiers
- Bearish: Three Black Crows
- Bearish: Dark Cloud Cover
- Neutral: Doji
- Other patterns: High Wave, Hammers, Shooting star, Gravestone Doji, Long Legged Doji
Indicators
- Bollinger Bands:
- Consist of a moving average and two standard deviation lines
- Used to identify overbought or oversold conditions
- Parameters: Upper Band, Lower Band, Median Line
- Directional Movement Index (DMI):
- Used to determine the strength and direction of a trend
- Consists of Positive Directional Indicator (+DI), Negative Directional Indicator (-DI), and Average Directional Index (ADX)
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Description
Test your knowledge on various trading strategies, indicators, and chart patterns used by traders. Topics include stop loss, trailing, pyramiding, support & resistance, Heikin-Ashi charts, and more.
