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

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Questions # 41:

ALL of the following are standard patterns used with 3-Box reversal point and figure charts, EXCEPT:

Options:

Bullish or Bearish Triangle

Triple Top or Triple Bottom

Double Top or Double Bottom

Bullish or Bearish Fulcrum

Expert Solution

Questions # 42:

If a peak occurs prior to the halfway point of a cycle, this would be considered:

Options:

Left translation

Right translation

Inversion

Entropy

Expert Solution

Questions # 43:

Which of the following is NOT true of the Relative Strength Index

Options:

It is scaled from 0 to 100

It is more volatile than simple measures of momentum

It uses all the price values in a time period

It is frequently used to determine overbought and oversold levels

Expert Solution

Questions # 44:

Which of the following is the reason behind choosing a logarithmic scale? Select the best possible answer.

Options:

When short periods of trading activity are plotted

When long or short periods of trading activity are plotted

When long periods of trading activity are plotted

When intervals of trading activity are plotted over a limited span

Expert Solution

Questions # 45:

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?

Options:

A Simple Moving Average

An Oscillator

An Exponential Moving Average

A Linear Regression Line

Expert Solution

Questions # 46:

In tweezers tops patterns, which aspects of the two candles MUST match?

Options:

Both candles must have shaven tops

Both candles must have the same high price

Both candles must have the same color real bodies

The tops of both real bodies must be the same

Expert Solution

Questions # 47:

Which of the following best helps quantify the risk of a trading system?

Options:

Maximum Cumulative Drawdown

Maximum Favorable Excursions

Longest Flat Time

Length of Average Winning Trade

Expert Solution

Questions # 48:

To calculate moving averages for a point-and-figure chart:

Options:

First, make a decision as to how many columns to average.

First, re-draw the chart as a 1X1 chart,

First, find the longest column, and count the number of filled boxes.

First, convert the chart to a conventional line chart.

Expert Solution

Questions # 49:

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

Options:

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

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

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

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

Expert Solution

Questions # 50:

What is the measuring objective for flags and pennants?

Options:

There is a different measuring objective for each

Flags fly at half mast and pennants are considered reversal patterns

The move after the pattern will be equal to the move before the pattern

Half the distance of the preceding move from breakout to the flag or pennant

Expert Solution

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