CMT Association CMT-Level-II Exam Questions Free Practice Test

Viewing page 1 out of 8 pages

Viewing questions 1-10 out of questions

Questions # 1:

In regards to cycle analysis, translation is:

Options:

Distance between troughs

Distance between peaks

Useful in checking where the trend direction is headed or if it is changing

To the left when the peak is beyond the halfway point

Expert Solution

Questions # 2:

Which of the following is a proper technical usage of MACD indicators?

Options:

Trendline analysis can be used with MACD

MACD crossover rules are different than other crossover rules

MACD histograms are best used to initiate new positions contrary to the price trend

When the slower MACD line is above the faster line, the MACD histogram will be above zero

Expert Solution

Questions # 3:

Which of the following is true of moving averages?

Options:

Moving averages provide the most valid trade signals in sideways markets

Moving averages provide the most valid trade signals in trending markets

Moving averages always provide more valid trade signals than oscillators

Oscillators always provide more valid trade signals than moving averages

Expert Solution

Questions # 4:

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

Options:

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

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

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

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

Expert Solution

Questions # 5:

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

Options:

Wave four should not overlap wave one

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

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

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

Expert Solution

Questions # 6:

The Sharpe Ratio is defined as?

Options:

(expected return plus the risk free interest rate) divided by the standard deviation of returns

(expected return minus the risk free interest rate) divided by the standard deviation of returns

(expected return divided by the risk free interest rate) divided by the standard deviation of returns

(expected return times the risk free interest rate) divided by the standard deviation of returns

Expert Solution

Questions # 7:

The "Rising 3 Methods" candlestick pattern is:

I. Bullish

II. Bearish

III. Long White Body followed by a series of smaller falling candles

IV. Long Black Body followed by a series of smaller rising candles

Options:

I & III

I & IV

II & III

II & IV

Expert Solution

Questions # 8:

__________ is used to calculate the relative volatility of the current portfolio compared to the benchmark by calculating the annualized return less the risk-free return and then divided by beta.

Options:

Sharpe ratio

Calmar ratio

Sortino ratio

Treynor ratio

Expert Solution

Questions # 9:

Which market tends to have the GREATEST amount of volatility?

Options:

Bonds

Currencies

Eurodollars

Equities

Expert Solution

Questions # 10:

Abandoned baby patterns:

Options:

appear upon completion of star patterns

appear nowhere in star patterns, only in box ranges

ideally has a doji as second real bottom

can only be formed over long periods of time

Expert Solution

Viewing page 1 out of 8 pages

Viewing questions 1-10 out of questions

Pass the CMT Association CMT Program CMT-Level-II Questions and answers with CertsForce