Weekend Sale Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: xmas50

CMT Association CMT-Level-II - CMT Level II Exam

CMT Association CMT-Level-II Premium Access     Download Demo    
Page: 2 / 8
Total 262 questions

In point and figure theory, triple-tops and triple-bottoms, when breached:

A.

Lead to smaller continuation patterns

B.

Frequently leads to a consolidation phase

C.

Will lead to a stronger directional move

D.

Suggest a failure in the longer term pattern

To calculate moving averages for a point-and-figure chart:

A.

First, make a decision as to how many columns to average.

B.

First, re-draw the chart as a 1X1 chart,

C.

First, find the longest column, and count the number of filled boxes.

D.

First, convert the chart to a conventional line chart.

According to Charles Dow, what has been the main downfall of Wall Street investors?

A.

Independent thinking

B.

Failure to stay the course

C.

Pride of opinion

D.

Failure to abide by classic trading rules

Which of the following pieces of information is NOT contained in the CFTC's Commitment of Traders report?

A.

Positions of hedgers and speculators

B.

Historical open interest of each contract

C.

Current open interest of each contract

D.

Reportable and non-reportable positions

What two characteristics MUST a cycle possess in order for it to be traded rationally:

A.

There must be a reason for its existence and it must have regular intervals between peaks

B.

There must be confidence that the cycle will continue and it must be synchronized with another cycle

C.

There must be a reason for its existence and confidence that it will continue

D.

There must be a way to forecast it and it must be synchronized with another cycle

According to the MTA Code of Ethics, what prohibitions MUST be adhered to after making a buy or sell recommendation?

A.

Allow adequate time for clients to act on recommendations before the analyst acts on the recommendation

B.

Analysts must give clients and their employer adequate time to trade, but the analyst's family members are under no such restriction

C.

Analysts may effect trades for their own account even if their employer has not had time to act on their recommendation

D.

Insider trading activity is the subject of SEC regulations, therefore the MTA Code of Ethics is silent on this issue

Steve Smith, CFA, is an equity research analyst for a long-term investment fund. His annual bonus is linked to annual trading profits. Under a new policy, the assessment period is switched to a monthly assessment

period. According to the Code and Standards, best practices dictate:

A.

keeping the policy change within the firm.

B.

keeping the policy change within the firm and existing clients.

C.

updating disclosures when the policy change is implemented.

D.

requiring Smith to obtain permission from each client prior to implementation of the new policy.

Which of the following is one of the disadvantages of computerized trading systems?

A.

Trading decisions are less consistent

B.

Most computerized systems are unprofitable in non-trending markets

C.

Profit trades are exited too early

D.

Computerized systems miss many market trends

Which of the following would not be a violation of the Code of Ethics in a published research report or statement?

A.

Estimates which are subject to change

B.

Inaccurate information

C.

Statements inconsistent with the accumulated knowledge of technical analysis

D.

Statements which disparage the work of other analysts

Which of the following are valid interpretations of the put-call ratio?

A.

It is the major sentiment index used for options trading

B.

It is used as a contrary indicator

C.

Extreme levels are trading signals

D.

All of the above