What is the defining characteristic of a paper umbrella candlestick pattern?

A long upper shadow with a small real body A long lower shadow with a small real body A small real body with upper and lower shadows of equal length A large real body with no shadows

When does a paper umbrella pattern become a hammer?

When it appears at the top of an uptrend When it appears at the bottom of a downtrend When the real body is green When the real body is red

What is the significance of the shadow to real body ratio in a paper umbrella pattern?

It determines the strength of the trend reversal It indicates the volatility of the stock It helps identify false signals It has no significance

What is the recommended trading action when a hammer pattern is observed?

Sell the stock Short the stock Buy the stock Hold the stock

What is the suggested stop-loss placement for a trade based on a hammer pattern?

Above the high of the hammer Below the low of the hammer At the opening price of the hammer At the closing price of the hammer

When does a paper umbrella pattern become a hanging man?

When it appears at the top of an uptrend When it appears at the bottom of a downtrend When the real body is green When the real body is red

What is the recommended trading action when a hanging man pattern is observed?

Sell the stock Short the stock Buy the stock Hold the stock

What is the suggested stop-loss placement for a trade based on a hanging man pattern?

Above the high of the hanging man Below the low of the hanging man At the opening price of the hanging man At the closing price of the hanging man

What is the key difference between a shooting star and a paper umbrella?

The shooting star has a long upper shadow, while the paper umbrella has a long lower shadow The shooting star has a small real body, while the paper umbrella has a large real body The shooting star appears at the bottom of a downtrend, while the paper umbrella appears at the top of an uptrend There is no difference between a shooting star and a paper umbrella

What is the recommended trading action when a shooting star pattern is observed?

Sell the stock Short the stock Buy the stock Hold the stock