Which pattern consists of two opposite color candles with matching closes?

Prepare for the CMT Level 2 Exam with our quiz. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready to excel on your path to becoming a Chartered Market Technician!

The pattern that consists of two opposite color candles with matching closes is known as the counterattack line. This pattern typically occurs at the end of a trend and is indicative of a potential reversal.

In a counterattack line pattern, you have a bullish candle followed by a bearish candle (or vice versa) that closes at the same level as the previous candle's close. This suggests a battle between buyers and sellers, with both sides showing strength but resulting in a draw at the closing price. The equal closing prices can reflect indecision and the possibility of a shift in momentum, making it a valuable pattern for traders to identify.

The other choices do not match the description of the pattern in question. A candle with no wicks does not refer to a pattern formed by two candles and is more about the individual candle's formation. Tweezers Bottom refers to two candles with matching lows, and Shaven Top focuses on a single candle that closes near its low with no upper wick, which also does not involve two contrasting candles with matching closes. Thus, the counterattack line is the correct answer based on the criteria provided.

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