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CMT-Level-II Exam Dumps - CMT Association CMT Program Questions and Answers

Question # 24

When small cap stocks have abnormal strength, this can be attributed to the:

Options:

A.

The January Barometer

B.

The January Effect

C.

Kondratieff K-Wave

D.

Hindenburg Omen

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Question # 25

Which of the following would BEST improve the profitability of a trend-based trading system?

Options:

A.

Use of additional trend periods

B.

Increase the delay in taking action after a trade signal is given

C.

Utilize support and resistance lines

D.

Utilize candlestick charts instead of bar charts

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Question # 26

Which is the CORRECT interpretation of the candlestick umbrella pattern?

Options:

A.

They can be bullish or bearish depending on the market

B.

They are bearish after a rally

C.

They are called hammers after a downtrend

D.

All of the above

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Question # 27

In a meeting with his firm's senior research analyst, George Powel, a proponent of the CFA Institute Research Objectivity Standards (ROS), stated that the key objective of the ROS is to create voluntary reporting of

research practices that promote independent and objective research to CFA Institute on an annual basis. With regard to his statements about the objectives of the ROS.

Options:

A.

he is correct.

B.

he is incorrect.

C.

He is correct about the voluntary reporting aspect.

D.

He is correct about the independent and objective research aspect.

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Question # 28

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:

A.

I & III

B.

I & IV

C.

II & III

D.

II & IV

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Question # 29

The _______________ tracks the degree of mass participation in rallies and decline.

Options:

A.

MACD line

B.

RSI

C.

Relative strength

D.

Advance/Decline line

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Question # 30

Which of the following is most likely to occur when the overall market is deeply oversold and on the verge of reversing?

Options:

A.

Lagging groups fail to confirm new lows

B.

Leading groups fail to confirm new lows

C.

Relative strength of lagging groups begins to improve

D.

Leading groups make new lows and accelerate to the downside

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Question # 31

Which of the following is true of moving average construction?

Options:

A.

In the exponential moving average more weight is given to volume on higher volume days

B.

The simple moving average is the geometric mean of previous prices

C.

The linear weighted average addresses the problem of including only the price action covered by the length of the average itself

D.

A shorter term moving average more closely tracks price action

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Question # 32

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

Options:

A.

Volume is not used in futures, only open interest

B.

Contract volume and total open interest are used in bonds

C.

Declining volume and open interest suggest the trend will continue

D.

Increasing volume and open interest suggest the trend will continue

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Question # 33

Which of the following is NOT true of the belt hold candle?

Options:

A.

The pattern consists of a single candle

B.

The bearish belt-hold is a long black candle that opens on the high and moves lower through the trading session

C.

A short belt-hold line has more significance than a long belt-hold line

D.

The term belt-hold refers to a sumo wrestling maneuver where a wrestler pushes his opponent while holding onto his belt

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Exam Code: CMT-Level-II
Exam Name: CMT Level II Exam
Last Update: Feb 23, 2025
Questions: 262
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