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

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Total 262 questions

Which of the following is the formula for calculating RSI?

A.

RSI = 100 - (100/(1 X RS))

B.

RSI = 100 - (100/(100 + RS))

C.

RSI = 100 - (100/(1 + RS))

D.

RSI = 100 + (100/(1 + RS))

Which of the following is a true statement according to Elliott Wave Theory?

A.

Wave four should not overlap wave one

B.

The theory is composed of time, ratios and wave forms, in that order of importance

C.

The theory was originally applied to individual stocks and does not work as well for indices

D.

The theory works best in commodity markets traded primarily by professional traders such agricultural futures

The Efficient Market Hypothesis assumes that:

I. Most investors will act rationally

II. Most investors will act irrationally

III. Prices typically reflect all available information

IV. Prices typically do not reflect all available information

A.

I & III

B.

I & IV

C.

II & III

D.

II & IV

Which of the following asset classes as a leading indicator for the stock market?

A.

Bonds

B.

Bullion

C.

Precious metal

D.

Energy

Which of the following is the calculation for price objective using the horizontal count method?

(Note: X is the multiplication symbol in this question)

A.

Price level of the lowest box (for up counts) + (number of boxes in the reversal columns X reversal size)

B.

Price level of the lowest box (for up counts) X number of boxes in the reversal columns X reversal size

C.

Price level of the lowest box (for up counts) of the base X number of columns of the base X reversal size

D.

Price level of the lowest box (for up counts) of the base + (number of columns of the base X reversal size)

Based on the chart below, interpret the on balance volume (OBV) indicator with respect to price action:

A.

Prices are consolidating but OBV direction has turned higher which indicates accumulation by long term traders.

B.

Negative divergence between price and indicator suggest distribution is taking place at top.

C.

Prices are higher but OBV is sideways which can't be interpreted.

D.

Positive divergence between price and indicator suggest uptrend is weak and near reversal.

Which of the following is a CORRECT usage of an oscillator constructed using two moving averages?

A.

To help identify long-term variations from the short-term trend

B.

To spot confirmations between technical indicators

C.

To pinpoint the crossing of two moving averages

D.

All of the above

Which of the following is a true statement according to Elliott Wave Theory?

A.

The number of waves follows the Pythagorean theorem

B.

Ratios are used to define price objectives

C.

The rule of alternation states that up waves follow down waves

D.

Bear markets do not fall below the top of the prior fourth wave

___________ is used for comparing the long-term performance of one system against another.

A.

Beta

B.

Sharpe Ratio

C.

Calmar ratio

D.

Treynor Ratio

Which of the following factors would increase the predictive power of an engulfing pattern?

A.

The first day has a very long real body and the second day has a very short real body

B.

The pattern appears after a consolidation pattern

C.

There is heavy volume on the first day of the engulfing pattern

D.

None of the above