Price Action Fundamentals Quiz Price Action Fundamentals 1 / 60 Which statement best describes pure price action trading? Trading based on indicators and oscillators Trading based on understanding price movement and structure Following social media setups Using algorithmic signals 2 / 60 What should a trader look for after a BOS (Break of Structure)? Entry immediately after the break A pullback or retest into structure or zone A reversal setup without confirmation News event confirmation 3 / 60 Which timeframes are best for identifying overall market structure? 1-minute or 3-minute 1-hour and 4-hour Only daily chart Random timeframes 4 / 60 During consolidation, price typically shows: High momentum with clean swings Clear direction and strong trend Choppy movement within a range No liquidity in market 5 / 60 What does a long wick rejection candle usually represent? Strong continuation Low volume Market rejection from a level Trend confirmation 6 / 60 When a strong bullish candle closes above previous highs, it often indicates: Weak momentum Possible continuation of buying pressure Imminent reversal Fake breakout always 7 / 60 What’s the main purpose of identifying supply and demand zones? To predict news events To locate potential reaction points where price may reverse To measure volatility To calculate spreads 8 / 60 A “Change of Character (CHOCH)” usually signals what? A pause in the trend Start of a new impulsive leg Possible reversal in market direction Market consolidation 9 / 60 In an uptrend, what defines bullish market structure? Lower highs and lower lows Higher highs and higher lows Flat highs and flat lows Sideways range 10 / 60 What does a “Break of Structure (BOS)” indicate in price action? A change in timeframe A possible continuation or reversal in market trend Random market spike End of a trading session 11 / 60 What’s the ultimate goal of price action mastery? Understand market behavior with clarity and confidence Predict next candle Follow signals Trade news 12 / 60 What is “price compression”? Tight consolidation before expansion Rapid moves High volume trend Fakeout candle 13 / 60 Why should traders avoid chasing candles? To prevent emotional, late entries To increase reward To boost volume To reduce learning 14 / 60 What’s the purpose of identifying structure on higher timeframe? To trade with bigger context To confuse trades For signals None 15 / 60 Which is more important — candle close or wick? Candle close Wick Indicator Both random 16 / 60 What defines a valid support zone? Area where buying pressure consistently appears Indicator crossover Fibonacci level only Big candle wick 17 / 60 When price respects previous high as resistance, it’s called: Structure flip Liquidity zone Indecision area Trendline break 18 / 60 What often happens when inefficiency is filled? Price reacts or reverses Trend breaks instantly Volume stops Random move 19 / 60 What does “inefficiency” or “imbalance” in price mean? Sharp move with unfilled orders Random wick Low liquidity only Range market 20 / 60 What does “smart money” represent? Institutional participants Retail traders Bot traders Random groups 21 / 60 What confirms a structure break is valid? Candle close beyond structure Wick rejection Indicator signal Random movement 22 / 60 What is a “corrective leg”? Slower counter-trend pullback Impulsive continuation Sudden breakout Equal high 23 / 60 What is an “impulsive leg”? Small candle correction Range area Strong directional move with momentum Reversal pattern 24 / 60 What does an “order block” represent? Last candle before strong move Gap in volume Random box Indicator zone 25 / 60 Why is multi-timeframe analysis important? Adds more indicators Confuses traders Gives structural clarity and context Reduces entries 26 / 60 Which candle pattern shows indecision? Doji Marubozu Engulfing Hammer 27 / 60 A “breaker block” appears when: A zone that caused a BOS later fails A random candle prints Volume dries up Timeframe ends 28 / 60 Why do liquidity grabs happen before reversals? Institutions need orders to move price News only Market error Coincidence 29 / 60 In a downtrend, which sequence defines structure? Lower highs and lower lows Higher highs and higher lows Equal highs Random moves 30 / 60 What does “range expansion” mean? Market volatility increasing Market slowdown Low volume Flat candles 31 / 60 What’s the best sign of an active trend? Strong impulsive legs and shallow pullbacks Random candle size Weak closes High wicks both sides 32 / 60 What’s the key goal of price action analysis? Predict price exactly Understand structure & flow, not predict Match indicators Copy signals 33 / 60 What’s the ideal entry area after structure break? Immediately at break On retest or pullback Before candle closes After reversal 34 / 60 The market is in a “range” when: HH and LL are not forming Price makes new highs Clear trend exists Volume is strong 35 / 60 What is a “liquidity zone”? Order block Random area Area where stop losses are collected Fibonacci zone 36 / 60 What is the “wick-to-body ratio” useful for? Identifying rejection strength Measuring volume Setting SL Predicting time 37 / 60 What does a strong bearish engulfing candle show? Bullish continuation Range market Low volume Reversal pressure from sellers 38 / 60 Why does price often retest previous structure? For randomness To stop out traders To confirm order flow and liquidity Because of indicators 39 / 60 Which pattern shows absorption of liquidity? Continuous trending candles Inside bar Volume spike Fake breakout followed by opposite move 40 / 60 “Discount zone” in price action means: Area below equilibrium, favorable to buy Expensive zone Overbought region Demand turning into supply 41 / 60 In price action, “premium zone” refers to: Low volatility range Institutional order Area above equilibrium (discount/sell area) Demand zone 42 / 60 What is an “equal high” in structure? Sudden drop in price Volume imbalance Two highs at nearly same price Random top 43 / 60 What type of candles often appear before reversals? Strong impulsive candles Marubozu Exhaustion candles with long wicks Engulfing always 44 / 60 What happens when price breaks a key low in an uptrend? Structure shifts bearish Trend continues Liquidity builds up Consolidation starts 45 / 60 What does “clean structure” mean? Clear HH/HL or LH/LL sequence Random spikes Indicator signals Overlapping candles 46 / 60 What’s the main reason to mark swing highs and lows? To identify structure and direction To find Fibonacci ratios To measure volatility For decoration 47 / 60 Which structure phase shows accumulation? Price moving in a tight range before breakout Trend continuation Distribution top Fast selloff 48 / 60 What does a long lower wick on a bullish candle indicate? Buying pressure from lower levels Selling pressure Range breakout Flat session 49 / 60 What’s the difference between BOS and CHOCH? BOS = continuation, CHOCH = potential reversal BOS = range, CHOCH = volume Both same BOS = pullback 50 / 60 What is “liquidity grab”? Clearing stop losses before true move Breakout entry Volume spike Candle gap 51 / 60 What does a “retest” of structure usually provide? Confirmation of breakout strength Signal to exit Random pullback News impact 52 / 60 What defines a strong key level? One touched many times Random horizontal line Level where price reacted sharply Psychological number only 53 / 60 What does “order flow” refer to? How liquidity enters and exits the market Number of trades per day Chart volume only EMA crossover 54 / 60 What does a strong impulsive candle suggest? Weak market Sudden reversal Range market Strong participation in direction 55 / 60 A BOS (Break of Structure) in an uptrend means: Possible correction or reversal Trend is continuing Market closed Liquidity is gone 56 / 60 Which of these shows market compression before breakout? Expanding highs and lows Increasing candle size Random spikes Tight range with reduced volatility 57 / 60 What is the main purpose of a trendline? To find Fibonacci levels To predict news To visualize direction and structure To set stop loss 58 / 60 Which candle type shows strong rejection from a price level? Doji Hammer Engulfing Inside bar 59 / 60 What usually causes a fake breakout? Strong liquidity and trapped traders Strong volume Lack of participants High volatility only 60 / 60 What does a series of higher highs and higher lows signify? Uptrend Downtrend Range Accumulation Your score isThe average score is 37% 0% Restart quiz
