Check Real CMT Association CMT-Level-II Exam Question for Free (2023) [Q60-Q82]

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Check Real CMT Association CMT-Level-II Exam Question for Free (2023)

Get Ready to Boost your Prepare for your CMT-Level-II Exam with 264 Questions


CMT Association CMT-Level-II (Chartered Market Technician Level II) Exam is a professional certification exam for individuals seeking to advance their knowledge and skills in technical analysis of financial markets. CMT-Level-II exam is designed to test the candidate's proficiency in a wide range of topics related to technical analysis, including charting techniques, market indicators, price patterns, and risk management strategies.


The Chartered Market Technician (CMT) Association is a globally recognized organization that provides training and certification programs in technical analysis to financial professionals. The CMT-Level-II (CMT Level II) Exam is the second level of certification provided by the organization after the CMT-Level-I (CMT Level I) exam. The CMT-Level-II exam is designed to test the advanced knowledge and skills of financial professionals in the field of technical analysis.

 

NEW QUESTION # 60
According to Kirkpatrick and Dahlquist, during emotional times, flow of funds signals:

  • A. Appear to work exceptionally well because of the market's flight to safety.
  • B. Suggests the duration of the next downleg in the market cycle
  • C. Appear to work poorly because price seems to divorce itself from economics.
  • D. Function no differently than at any other time in the market cycle because of shortcomings in the measurement procedures.

Answer: C


NEW QUESTION # 61
Which of the following indicator combines price, volume and open interest?

  • A. TRIX
  • B. Herrick Payoff Index
  • C. Moneyflow Index
  • D. True Strength Index

Answer: B


NEW QUESTION # 62
Which of the following asset classes as a leading indicator for the stock market?

  • A. Energy
  • B. Precious metal
  • C. Bullion
  • D. Bonds

Answer: D


NEW QUESTION # 63
Which of the following would provide the least help to a trader who is trying to determine where to place a stop order?

  • A. ATR
  • B. Parabolic SAR
  • C. Pivot Point Technique
  • D. TRIN

Answer: D


NEW QUESTION # 64
A trend based trading system where signals occur when the current price reaches a new high or low:

  • A. Point and figure
  • B. Swing breakout
  • C. Simple moving average
  • D. N-day breakout

Answer: B


NEW QUESTION # 65
What is the reason behind time being an important aspect of point-and-figure chart analysis?

  • A. All of the above statements
  • B. To see how long a pattern takes to form
  • C. To improve the efficiency of the system
  • D. To reduce errors in a system

Answer: B


NEW QUESTION # 66
Which of the following must every MTA Member and Affiliate comply with?

  • A. Rules promulgated by the MTA Board of Governors
  • B. MTA Constitution
  • C. MTA By-laws
  • D. All of the above

Answer: D


NEW QUESTION # 67
What is the general term for rate-of-change momentum indicators:

  • A. RSI
  • B. Oscillators
  • C. Stochastic
  • D. MACD

Answer: B


NEW QUESTION # 68
Which of the following is not a disadvantage of the patterns that are formed by Broadening formations?

  • A. The breakout lines are moving permanently away from each other
  • B. They are often difficult to identify
  • C. They are relatively common in occurrence
  • D. They are hard to make the most of the profit

Answer: C


NEW QUESTION # 69
__________ 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.

  • A. Treynor ratio
  • B. Sharpe ratio
  • C. Sortino ratio
  • D. Calmar ratio

Answer: A


NEW QUESTION # 70
When small cap stocks have abnormal strength, this can be attributed to the:

  • A. Kondratieff K-Wave
  • B. The January Barometer
  • C. Hindenburg Omen
  • D. The January Effect

Answer: D


NEW QUESTION # 71
From a contrarian's perspective, which of the following would be considered a bullish indicator?

  • A. Sales of investment books are increasingly dramatically
  • B. A Business Week cover with a story on "The Death of Equities"
  • C. CNBC is on the television at the local bar, and everyone is paying attention
  • D. The vast majority of professional financial letter writers are bullish

Answer: B


NEW QUESTION # 72
_______moving average uses reverse linear weights:

  • A. The weighted
  • B. The simple
  • C. The exponential
  • D. The pivot-point

Answer: D


NEW QUESTION # 73
Which of the following BEST characterizes the Theory of Contrary Opinion?

  • A. The future can be extrapolated based on present trends
  • B. Always trade against the prevailing trend
  • C. When virtually everyone takes the position that the market is headed in a certain direction, there is no one left to push the trend any further
  • D. Fundamental analysis is always wrong

Answer: C


NEW QUESTION # 74
What is the specific name given to the normal distribution for having special characteristics?

  • A. Center limit theorem
  • B. All of the above statements
  • C. Histogram
  • D. Central limit theorem

Answer: D


NEW QUESTION # 75
Which of the following is the BEST volume indicator for analysis of futures trading?

  • A. Open interest
  • B. Total volume
  • C. Contract volume
  • D. Breadth

Answer: B


NEW QUESTION # 76
In regards to cycle analysis, translation is:

  • A. Useful in checking where the trend direction is headed or if it is changing
  • B. Distance between troughs
  • C. Distance between peaks
  • D. To the left when the peak is beyond the halfway point

Answer: A


NEW QUESTION # 77
A correlation coefficient of 0.75 between two variables suggests ______ relationship:

  • A. strong
  • B. non-existent
  • C. low
  • D. extremely strong

Answer: A


NEW QUESTION # 78
All of the following are similar technical indicators, EXCEPT:

  • A. Stochastics
  • B. The Sentix Index
  • C. Williams %R
  • D. Relative Strength Index

Answer: B


NEW QUESTION # 79
What steps must analysts take in introducing new methods of technical analysis under the MTA Code of Ethics?

  • A. New procedures must be supported by adequate back testing confirmed by at least technician
  • B. All new techniques must be fully documented even if proprietary methods must be disclosed to do so
  • C. New procedures must be documented as to procedure and rationale
  • D. New methods need not be consistent with the accumulated knowledge of the field of technical analysis

Answer: C


NEW QUESTION # 80
Extrapolation errors occur when investors:

  • A. are tricked into thinking that they can foretell the future because they can easily observe the past.
  • B. tend to be overconfident regarding their abilities and make major mistakes like too little diversification and over trading.
  • C. assume that current and recent conditions will prevail well into the future, also causing them to ignore the evidence of changing circumstances.
  • D. try to identify patterns in financial markets that do not exist.

Answer: C


NEW QUESTION # 81
The only effective method of diversifying a portfolio is by including asset classes with ________ correlation to stocks such as cash, foreign exchange or commodities.

  • A. meaningful
  • B. low/negative
  • C. positive
  • D. moderately positive

Answer: B


NEW QUESTION # 82
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