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

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Total 262 questions

Which of the following are valid point and figure chart trading tactics?

A.

Simple trade signals can be used for new commitments whereas complex signals are needed for liquidation purposes

B.

Long positions are closed when they fall below the trend line and short positions are closed when they rise above the trend line

C.

Stop losses should be placed below the last column of Os in an uptrend

D.

All of the ab

Which of the following the correct description of the law of percentages in the field of decision making and selection?

A.

A relative loss of 20% can be made back with a relative gain of 20%, but an absolute 20% loss requires a 25% gain to break even

B.

A relative loss of 20% can be made back with a relative gain of 20%, but an absolute 20% loss don't require a 25% gain to break even

C.

A relative loss of 20% can be made back with a relative gain of 20%, but an absolute 10% loss requires a 25% gain to break even

D.

A relative gain of 20% can be made back with a relative loss of 20%, but an absolute 20% loss requires a 25% gain to break even

Which of the following is not a characteristic of a normal distribution? Choose the best possible answer.

A.

It is symmetric about the mean

B.

The mean, median, and mode are all located at the trough

C.

It extends infinitely in both directions

D.

It is bell-shaped, with its peak at the center

Which of the following is the correct method to plot a percentage change in point-and-figure charts?

A.

The approximated prices are plotted as a number

B.

The prices are converted into their logarithmic equivalent and plotted as a logarithmic number

C.

The exact prices are plotted as a number

D.

The prices are converted into their arithmetic equivalent and plotted as an arithmetic number

Which of the following factors would increase the predictive power of the evening star pattern?

A.

If there is no overlap among the real bodies of the candles in the pattern

B.

If the last candle closes deeply into the body of the first candle

C.

If there is light volume on the first candle of the pattern and heavy volume on the last candle of the pattern

D.

All of the above

Which of the following statement states the correct percentage of the percentage gain on a loss of 50 percent?

A.

It requires an 80% gain to break even

B.

It requires a 100% gain to break even

C.

It requires a 90% gain to break even

D.

It requires a 70% gain to break even

Based on the chart given below; identify the best course of action:

A.

Shares are losing momentum which can be confirmed by negative divergence between price and ROC; trader should be cautious and be quick to reduce position on a violation of trendline.

B.

Shares are making a series of higher highs and higher lows; ROC has turned negative which is confirming the price action; should use current pullback to add to position.

C.

ROC has turned negative which is a sell signal; should initiate a short position.

D.

Negative divergence observed between price and ROC should be ignored as prices are near life time highs.

Which of the following is typically a period of heavier volume?

A.

First day of the week

B.

Day before a holiday

C.

Triple witching days

D.

Summer days

Which is the CORRECT interpretation of the candlestick hammer pattern?

A.

A hammer always has a black real body

B.

A hammer comes after market rallies

C.

A hammer has no lower shadow

D.

A hammer need not be confirmed by other indicators

When analyzing price action and volume, low activity (or a drop in volume) is normally associated with:

A.

a weak price trend.

B.

a strengthening price trend.

C.

greater fluctuations in price.

D.

lack of conviction on the part of traders.