Test Your Skills
Learning to trade Forex can be a life altering endeavour and hopefully, you are learning a lot of valuable skills from the educational content we provide and the webinars we run. However, it is important from time to time to stop and take stock of how your learning is going. So, to help you measure just how great your Forex skills are, we have designed a little quiz to test your knowledge.
Below there are 10 technical scenarios with a question based on each scenario, you can find the answers listed at the bottom of the page, but no cheating! Write down your answers as you go along and check them after.
- Below 5 means that you still have some work to do
- Between 5 and 7 means that you are really starting to get a hang of trading
- Between 7 and 10 means that you are turning into a Forex flyer
- If you score 10 out of 10, then a big round of applause for you, you’re probably already doing well with your trading!
Question 1: The chart below depicts a head & shoulders pattern which is a classic chart pattern. The red line underpinning the pattern is known as the neckline. What should traders look to do when price breaks this neckline region?
- Buy or Sell?
Question 2: The chart below shows a currency pair which is displaying a clear directional bias. Would you label this chart as being in a?
- Bullish trend or a bearish trend
Question 3: The chart below depicts a classic technical phenomenon. Where price has broken out above two key resistance levels, would you call this a?
- Bearish breakout or a bullish breakout
Question 4: The chart below shows another classic technical situation. The channel that price has broken out of would be classed as a?
- Bullish channel or bearish channel
Question 5: In the chart below you can see a typical situation that traders use indicators to highlight. Where price is continuing to make new lows, but the RSI indicator is putting in higher lows, this signals?
- Bearish divergence or bullish divergence
Question 6: Where we identify price testing a clear resistance level and the RSI indicator is telling us that momentum is overstretched to the topside, this is a good opportunity to?
- Buy or sell
Question 7: The highlighted candle is an example of which type of candlestick and what does it tell us about the market
- Engulfing candlestick or pin bar candlestick
- Price likely to keep going up or price likely to reverse lower
Question 8: The chart pattern highlighted by the converging yellow trend lines is an example of which type of classic chart pattern?
- Falling wedge, diamond pattern or contracting triangle
Question 9: The presence of a bearish pin at the 50% Fibonacci retracement level is an example of what?
- Oversold momentum, bullish confluence or bearish confluence
Question 10: Where price trades up to test a former swing high, this is an example of what sort of pattern and what should we look to do?
- Pennant, double top, rising bottom
- Buy or sell
- Q1: sell
- Q2: bullish trend
- Q3: bullish breakout
- Q4: bearish channel
- Q5: bullish divergence
- Q6: sell
- Q7 i) pin bar candlestick
- Q7 ii) price likely to reverse lower
- Q8) contracting triangle
- Q9) bearish confluence
- Q10 i) double top
- Q10 ii) sell