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

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Page: 7 / 8
Total 262 questions

Counterattack lines are formed when:

A.

a doji breaks a moving average

B.

a dumpling top fails with an abandoned baby pattern

C.

when opposite colored candles have the same close

D.

When same-colored candles have the same close

_______uses the distribution of daily trading range to create a new indicator.

A.

TRIX

B.

Money Flow Index

C.

True Strength Index

D.

Intraday Intensity

The only effective method of diversifying a portfolio is by including asset classes with ________ correlation to stocks such as cash, foreign exchange or commodities.

A.

positive

B.

meaningful

C.

low/negative

D.

moderately positive

What is the measuring objective for a symmetrical triangle formation?

A.

A trendline from the top of the pattern parallel to the lower trendline

B.

The height of the base of the triangle

C.

Both A. and B. are valid techniques

D.

Neither A. nor B. is a valid technique

A technical analyst was at a convention in which a long-term point and figure stock chart was being discusseD. He noticed that low-price action did not appear as active as high-price action on the chart. One suggestion the technical analyst could provide, to clear up this apparent distortion, would be to:

A.

Change the charting scale to logarithmic

B.

Increase the time frame on the chart

C.

Change the scale to arithmetic

D.

Add the daily opening prices to provide a more visual benchmark of price changes

Speculative stocks put on their best performance in which of the following markets?

A.

During the whole bull market

B.

At the early stages of a bull market.

C.

Near the final stages of a bull market.

D.

Both in the beginning and at the end of a bull market

________ is calculated by finding the probability of loss of the current market positions based on past market movements.

A.

Value at Risk

B.

Potential Risk

C.

Treynor ratio

D.

Hindenburg Omen

Intermarket analysis can be used for which investment decisions?

A.

Decisions among asset classes

B.

Decisions among equity market sectors

C.

Decisions among mutual fund

D.

All of the above

Which of the following is a TRUE statement about the Stochastic Oscillator?

A.

It examines the most recent closing price as a percentage of the price range over a window of time

B.

It is not as sensitive to recent price action as other indicators like Rate of Change

C.

It moves in the same direction as the Williams %R indicator

D.

It works best in a trending market, when it confirms the direction of the primary trend.

Which of the following conditions is an absolute must for a true divergence based on the MACD histogram?

A.

Breaking of the centerline

B.

Confirmation from the MACD fast line and signal line

C.

Price action extended above/below the 26 week moving average

D.

The MACD histogram has to record atleast a 200 bar low/high on the first trough/peak