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INDICATOR-READING DRILL12 concepts / fixed question order
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EMA and completed closes

The final candle traded above the EMA intrabar but closed below it. What does the chart actually confirm?

Read the chart and legend first. Choose the most precise statement, not the most confident prediction.

Price tests an EMA but finishes on its lower side.

Price and EMA

Relative price
EMABullish candleBearish candle
  • Final high: above EMA
  • Final close: below EMA
  • Decision point: completed close