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

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Questions # 31:

Which of the following is true of volume and open interest?

Options:

Volume precedes price

On-balance volume is not as accurate measure of volume as basic volume column charts

Within an uptrend, a sudden leveling off or decline in open interest often signals that the current trend will accelerate

Decreases in volume and open interest help confirm the resolution of price patterns

Expert Solution

Questions # 32:

According to the raw performance statistics which of the following statements predicts the correct when the performance of a broadening pattern at its best and its failure rate?

Options:

At best, the performance of an expanding pattern is average, and its rate of failure is above average

At best, the performance of an expanding pattern is average, and its rate of failure is below average

At best, the performance of an expanding pattern is above average, and its rate of failure is above average

At best, the performance of an expanding pattern is below average, and its rate of failure is above average

Expert Solution

Questions # 33:

Which of the following pieces of information is NOT contained in the CFTC's Commitment of Traders report?

Options:

Positions of hedgers and speculators

Historical open interest of each contract

Current open interest of each contract

Reportable and non-reportable positions

Expert Solution

Questions # 34:

Which of the following is the best combination which results in respect to the volume and pullback in Diamond Top pattern?

Options:

The best combination is when there is an upward breakout on less than normal breakout volume with no pullback

The best mix is when there is a downward breakout on less than normal breakout rate and with few pullbacks

The best combination is when a downward breakout happens on an under-average amount of breakout with no pullback

The best combination is when there is a downward breakout at an above-average breakout rate with few pullbacks

Expert Solution

Questions # 35:

Which is the CORRECT interpretation of the candlestick umbrella pattern?

Options:

They can be bullish or bearish depending on the market

They are bearish after a rally

They are called hammers after a downtrend

All of the above

Expert Solution

Questions # 36:

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

Options:

First day of the week

Day before a holiday

Triple witching days

Summer days

Expert Solution

Questions # 37:

Which of the following places the cycles in time length order?

Options:

Lunar, presidential, seasonal, alpha/beta and Kondratieff

Kondratieff, presidential, alpha/beta, seasonal and lunar

Alpha/beta, presidential, seasonal, lunar, and Kondratieff

Alpha/beta, lunar, seasonal, presidential and Kondratieff

Expert Solution

Questions # 38:

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:

Options:

Change the charting scale to logarithmic

Increase the time frame on the chart

Change the scale to arithmetic

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

Expert Solution

Questions # 39:

Reversals in point and figure charts:

Options:

Are set by convention as all point and figure charts have the same reversals

Depend on the investment time horizon of the holder

Can change within the same chart

Should be less than a week

Expert Solution

Questions # 40:

Which of the following is true of moving average crossovers?

Options:

It is considered bearish when a short term moving average crosses above a longer term moving average

In a triple crossover trading system buying is signaled when the shortest term moving average crosses over one of the other moving averages

The first crossover in a triple crossover system during an upside reversal is when the shortestterm moving average crosses above one of the other two averages

Once a moving average system is optimized, it can be used for trading all markets

Expert Solution

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