Technical Analysis Quiz

This technical analysis quiz tests the meanings of common indicators, chart patterns and volume clues. Choose an answer, read the explanation, then continue to your score and answer review. It uses a fixed set of 12 multiple-choice questions. A correct answer shows that you recognise a concept; it does not establish that a market move will follow or that a trading strategy is profitable.

What you will practise

• Momentum: Relative Strength Index (RSI), Moving Average Convergence/Divergence (MACD), and price-indicator divergence.
• Price structure: rising peaks and troughs, the head-and-shoulders pattern, support (a possible price floor) and resistance (a possible price ceiling).
• Candles and averages: doji (nearly matching opening and closing prices) and golden cross (a shorter moving average crossing above a longer one).
• Volatility: Bollinger Band narrowing and Average True Range (ATR).
• Volume: On-Balance Volume (OBV) and how volume is used when describing a breakout.

The questions ask about definitions and familiar interpretations. You do not enter an index symbol, share price, chart interval or volatility reading. There is no topic selector or difficulty setting on this quiz. The same question bank appears on a retake, so a better second score may reflect remembered answers as well as improved understanding.

For a starting reference, read technical analysis basics. Then use the quiz to find concepts that need a closer look. There is no need to place a trade to answer the questions or practise the vocabulary.

Answer, read, then move to the next question

Select the answer you think fits the question. Once selected, the response is locked for that question, the correct choice is highlighted and an explanation appears. Press Next to record the response and continue. On the last question, See Results completes the attempt. The score at the top counts recorded answers, so the newest choice is added when you move forward.

The result screen shows the percentage, the number correct, a level label and whether the attempt passed the quiz’s threshold. Its review marks each question and gives the expected answer for a missed item. Retake starts the same bank again. These controls do not create a new set of questions from current market conditions.

Before reading an explanation, try stating your reason in a short sentence. For example, did you choose an answer because the indicator measures direction, momentum or volatility? Naming that distinction helps you find an error that a remembered keyword can hide.

Chart pattern questions explained

Pattern questions ask you to name a shape and say what it is taken to mean. A head and shoulders has three peaks, with the middle one highest. The line joining the two troughs between the peaks is the neckline. Traders describe a close below the neckline as the pattern completing. The quiz tests that vocabulary. It does not say the pattern works every time.

A double top is two peaks at about the same level, and a double bottom is two troughs at about the same level. Triangles and flags are shapes where price ranges narrow or drift against a prior move. For each one, learn three things: what the shape looks like, what level is said to confirm it, and what level would show it has failed. The failure level is the part many beginners skip.

How a sample score is calculated

In this illustrative attempt, suppose you answer 9 of the 12 questions correctly. The score is 9 / 12 x 100 = 75%. The interface labels this Advanced and the attempt passes. With an assumed 8 correct, 8 / 12 x 100 is about 66.7%, which the interface rounds to 67%; that attempt is below the pass mark.

Each question contributes equally. No extra marks are added for speed, confidence or market experience. The level names are labels in this quiz, not qualifications, a comparison with other traders, or a measured probability of trading successfully. A result cannot assess position sizing, transaction costs or how you behave when money is at risk.

Keep a note of which concept you missed and why. A score can conceal a useful distinction: recognising the name of a crossover is different from knowing whether the previous bar was below the other line. Review the reason for an answer rather than using the total as a reason to increase a position.

RSI: overbought does not mean an immediate reversal

RSI is a momentum measure, meaning it describes the speed and change of price movements. The conventional labels are overbought above 70 and oversold below 30. Fidelity’s indicator guide also says RSI can remain at those extremes during a strong trend. The label alone is not an instruction to buy or sell.

A divergence compares the direction of price swings with the direction of indicator swings. If price makes a lower low while RSI makes a higher low, the quiz calls that bullish divergence. It describes a mismatch in momentum; it does not guarantee that the next bar rises. Keep the chart interval and the chosen swing points consistent when making that comparison.

The RSI calculator provides a separate calculation exercise. A numerical reading can help check the definition, while the reason for a live position still requires a plan that addresses losses and costs.

MACD: being above a line is different from crossing it

MACD compares moving averages, which smooth earlier prices. The usual setup subtracts a slower exponential moving average from a faster one, then smooths the MACD line to create a signal line. In the quiz, a bullish crossover is the MACD line moving from below that signal line to above it. It can happen while MACD is still below its zero line.

To make the distinction concrete, consider a made-up comparison. On the earlier bar, suppose MACD is -6 and its signal is -5. On the next bar, assume MACD is -3 and the signal is -4. MACD moved from below to above the signal, even though both values stayed negative. The later gap is -3 - (-4) = 1. That is a crossover description, not a price forecast.

This example is a paper exercise, not an extra scored quiz item or historical chart. Fidelity notes that MACD can repeatedly cross back and forth in a trading range. The MACD calculator is useful for a separate arithmetic check, with its own input assumptions.

ATR and Bollinger Bands answer different questions

ATR measures the size of price ranges rather than their direction. Its true-range calculation includes gaps from the previous close. A rising ATR therefore cannot, by itself, establish whether prices are rising or falling. The quiz uses a short volatility description; ATR can be calculated on chart bars other than daily bars too.

Bollinger Bands describe relative price levels and changing band width. A squeeze means the bands have narrowed. That observation alone does not supply the direction, size or timing of a later move. John Bollinger’s own rules say a touch of a band is not, by itself, a buy or sell signal, and prices can move along a band during a trend.

The same care applies to the quiz’s breakout and support wording. A close beyond a chosen level and increased volume are observations traders may examine. They do not prove that a breakout will persist. Nor does repeated testing establish a universally reliable support level. A question’s preferred answer is a learning convention, not evidence of a guaranteed outcome.

Moving average and golden cross questions

A simple moving average (SMA) is the average closing price over a set number of bars. Fidelity's indicator guide says a 200-bar SMA is a common stand-in for the long-term trend and a 50-bar SMA for the intermediate trend. A longer period gives a smoother line but adds lag, because the average is made of past prices and trails the market.

A golden cross, as the quiz uses the term, is a shorter average crossing above a longer one. The best known pair is the 50-bar over the 200-bar. A death cross is the reverse. Because both averages lag, the cross usually appears after a move has already happened, and in a sideways market the lines can cross back and forth. Learn the definition, and treat the cross as something to note, not an order to act.

Candlestick questions explained

Each candle shows the open, high, low and close for one bar. A doji forms when the open and close are almost the same, so the body is tiny. It is read as indecision between buyers and sellers. A hammer has a small body and a long lower shadow, and an engulfing candle has a body that covers the previous candle's body.

A candle name describes how one bar looked. It is not a signal by itself. Where the candle forms matters: after a long rise, at a level the market has respected before, or in the middle of a range. For a longer study, try the candlestick pattern quiz and then compare your answers with a real chart on your own platform.

Use the answer review to find a specific gap

• If you confused ATR with momentum, revisit what a price range measures before adding another indicator.
• If you confused a crossover with a positive value, compare the lines on the previous and current completed bars.
• If a pattern name was unfamiliar, write its definition without predicting what the next candle must do.
• If a volume answer felt certain, separate the observed volume from the unproven claim that the price move will continue.

OneTradeJournal lets you record a trade, its strategy and your notes by hand. A useful note might say what you observed, what would invalidate the idea and whether you followed your own plan. The quiz does not inspect those records, link to a broker account or judge a proposed order.

Support, resistance and volume questions explained

Support is a price area where falls have paused before, and resistance is an area where rises have paused. They are zones, not exact prices, and a level can fail. When price breaks through resistance, the old resistance is often watched as new support, but that is a habit of traders and not a rule.

Volume is the number of shares or contracts traded. Higher volume on a move is read as more participation. A breakout on thin volume is treated with more caution. The quiz asks which reading is conventional. It does not claim the volume story predicts the next bar.

RSI levels: the conventional numbers and their limits

Fidelity's guide gives the traditional RSI levels as overbought above 70 and oversold below 30. It adds that the levels can be adjusted to fit the security, for example using 80 for one that often reaches 70. It also says RSI can stay overbought or oversold for long periods in strong trends. A quiz answer based on 70 and 30 is the standard textbook answer and not an advance warning.

How to use the quiz to study

• Take the quiz once without notes and write down the concepts you missed.
• Read the explanation for each miss, then restate it in your own words.
• Open a chart in your own platform and find an example of each concept. Note where it worked and where it failed.
• Wait a few days and retake. The questions repeat, so a better score may come from memory. Check yourself by explaining the answers, not by the score.
• Keep the notes in a journal next to your trade records so you can see which concepts you used.

Other quizzes cover related ground: the candlestick pattern quiz, the options trading quiz and the risk management quiz. Risk is the part a chart quiz cannot test.

Technical analysis is a set of tools, not a guarantee

Technical analysis studies past prices and volume to describe what the market has been doing. It does not know why prices move, and signals can be wrong in any market, including Nifty and Bank Nifty. Two traders can read the same chart differently. Use what you learn to write rules before you trade: what you will look for, where you are wrong, and how much you will risk. Then record whether you followed the rules.

Questions about this technical analysis test

Sources

• Fidelity: RSI definitions and trend caveat, checked 15 Oct 2026.
• Fidelity: MACD crossovers and trading ranges, checked 15 Oct 2026.
• Fidelity: ATR and true range, checked 15 Oct 2026.
• John Bollinger: band-use rules, checked 15 Oct 2026.