
Get CMT-Level-II Actual Free Exam Q&As to Prepare for Your CMT Association Certification
CMT Association Actual Free Exam Questions And Answers
CMT Association CMT-Level-II: CMT Level II exam is an excellent certification program for professionals who want to improve their technical analysis skills and gain a deeper understanding of the financial markets. CMT-Level-II exam covers advanced topics in technical analysis and is recognized by financial institutions around the world. Candidates who pass CMT-Level-II exam will have a competitive advantage in the job market and demonstrate their commitment to professional development.
The Chartered Market Technician (CMT) Association is a global organization that provides education, certification, and networking opportunities for technical analysis professionals in the financial industry. The CMT Association offers three levels of certification, with the CMT-Level-II (CMT Level II) Certification Exam being the second level. The CMT-Level-II exam is designed to test the knowledge and skills of technical analysis professionals who have already passed the CMT-Level-I exam.
NEW QUESTION # 26
Most of these indicators measure what uninformed investors are doing.
- A. Breadth indicators
- B. Cycle indicators
- C. Sentiment indicators
- D. Flow of Funds indicators
Answer: C
NEW QUESTION # 27
A correlation coefficient of 0.75 between two variables suggests ______ relationship:
- A. non-existent
- B. extremely strong
- C. low
- D. strong
Answer: D
NEW QUESTION # 28
What is the proper use of long-term charts versus daily price charts?
- A. Daily price charts allow for a better assessment of the price trend
- B. Long-term charts are more useful for making trading decisions
- C. Daily price charts allow for a thorough trend analysis
- D. Long-term charts allow for a better assessment of the price trend
Answer: D
NEW QUESTION # 29
Over a period of 4 weeks, a swing trader notices that for a particular security the ADX reading has declined from a high of 45 to a current low of 15. What tool may best help the trader isolate a trading opportunity over the next few days?
- A. A Linear Regression Line
- B. An Exponential Moving Average
- C. A Simple Moving Average
- D. An Oscillator
Answer: D
NEW QUESTION # 30
Which of the following is NOT true of the three mountains and three rivers chart patterns?
- A. The three mountains pattern is also known as a triple top or Buddha top
- B. The three rivers patterns is also known as a triple bottom or inverted Buddha bottom
- C. The color of the real bodies is of utmost importance to its significance
- D. They are longer-term tops and bottom patterns, respectively
Answer: C
NEW QUESTION # 31
The bias under which, when an event has not occurred recently, the event is perceived as having zero or negligible probability of occurring in future, is categorized as:
- A. Framing bias
- B. Anchoring bias
- C. Saliency bias
- D. Sunk-cost bias
Answer: C
NEW QUESTION # 32
Which of the following is a true statement according to Elliott Wave Theory?
- A. The theory was originally applied to individual stocks and does not work as well for indices
- B. The theory is composed of time, ratios and wave forms, in that order of importance
- C. Wave four should not overlap wave one
- D. The theory works best in commodity markets traded primarily by professional traders such agricultural futures
Answer: C
NEW QUESTION # 33
Which crossover in MACD-Histogram is the strongest signal generated in the following chart of Alphabet Inc.
C ABD
- A. D
- B. B
- C. C
- D. A
Answer: A
NEW QUESTION # 34
What is the MTA's position with respect to knowledge of client and employer information:
- A. All information pertaining to any lawful activity of past or present clients or employers must be kept in confidence
- B. The MTA Code of Ethics is silent on client and employer confidentiality so members must refer to laws/rules promulgated by regulatory authorities
- C. The MTA Code of Ethics does not apply to confidentiality of unlawful client or employer activity
- D. Only knowledge of current clients and employers must be kept in confidence
Answer: A
NEW QUESTION # 35
What is the reason behind time being an important aspect of point-and-figure chart analysis?
- A. To reduce errors in a system
- B. To see how long a pattern takes to form
- C. All of the above statements
- D. To improve the efficiency of the system
Answer: B
NEW QUESTION # 36
Which of the following is a CORRECT usage of an oscillator constructed using two moving averages?
- A. All of the above
- B. To pinpoint the crossing of two moving averages
- C. To spot confirmations between technical indicators
- D. To help identify long-term variations from the short-term trend
Answer: B
NEW QUESTION # 37
Which of the following are valid point and figure chart trading tactics?
- A. Stop losses should be placed below the last column of Os in an uptrend
- 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. All of the ab
- D. Simple trade signals can be used for new commitments whereas complex signals are needed for liquidation purposes
Answer: A
NEW QUESTION # 38
A trend-based trading system where the trend is the average of a pre-determined number of previous days' (n) closing prices is:
- A. Linear regression slope
- B. Point and figure
- C. N-day breakout
- D. Simple moving average
Answer: D
NEW QUESTION # 39
Beta measures:
- A. how much an individual stock's return is related to the market return.
- B. the relation between a portfolio's volatility and market volatility.
- C. how much an individual stock's volatility is related to the market volatility.
- D. the relation between a portfolio's return and market return.
Answer: A
NEW QUESTION # 40
Which of the following is a diversification technique in trading?
- A. Trade multiple securities in markets with high correlation
- B. All of the above
- C. Balance risk across multiple markets and trading systems
- D. Stick to a single trading system
Answer: C
NEW QUESTION # 41
All of the following most directly measure internal market strength, EXCEPT:
- A. New Net Highs & New Net Lows
- B. Consumer Confidence Index
- C. Arms Index
- D. Net Ticks
Answer: B
NEW QUESTION # 42
According to Kirkpatrick and Dahlquist, during emotional times, flow of funds signals:
- A. Suggests the duration of the next downleg in the market cycle
- B. Appear to work poorly because price seems to divorce itself from economics.
- C. Function no differently than at any other time in the market cycle because of shortcomings in the measurement procedures.
- D. Appear to work exceptionally well because of the market's flight to safety.
Answer: B
NEW QUESTION # 43
Which of the following is NOT true of the Relative Strength Index
- A. It is scaled from 0 to 100
- B. It is frequently used to determine overbought and oversold levels
- C. It uses all the price values in a time period
- D. It is more volatile than simple measures of momentum
Answer: D
NEW QUESTION # 44
When using a two moving averages (MA. system, which of the following rules can be utilized to generate a buy signal?
- A. Buy when the faster moving average crosses the slower moving average from above.
- B. Buy when the faster moving average hooks the slower moving average from above.
- C. Buy when the faster moving average hooks the slower moving average from below.
- D. Buy when the current price crosses above both moving averages.
Answer: D
NEW QUESTION # 45
Which of the following is not a rule used in the statistical analysis done using a normal distribution?
- A. Two-thirds of the outcomes will lie either above or below within one standard deviation of the mean
- B. Two-thirds of the outcomes will lie above within one standard deviation of the mean
- C. Two-thirds of the outcomes will lie below within two standard deviations of the mean.
- D. 95% of the outcomes will lie within two standard deviations from the mean
Answer: C
NEW QUESTION # 46
An MTA Member or Affiliate using the MTA mailing list to send _____________ would not be in violation of the Code of Ethics:
- A. Research reports
- B. CMT Newsletter
- C. A free membership to a club
- D. Charting discount coupons
Answer: B
NEW QUESTION # 47
Which of the following is the BEST volume indicator for analysis of futures trading?
- A. Breadth
- B. Total volume
- C. Open interest
- D. Contract volume
Answer: B
NEW QUESTION # 48
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