CMT-Level-II Practice Exam Questions and Answers

A.  

Inside day

B.  

Outside day

C.  

Gap

D.  

Andrew's Pitchfork

A.  

Linear relationship, as the Best Fit line is curvilinear.

B.  

Linear relationship, as points fall generally along a straight line.

C.  

Non-linear relationship, as points fall generally along a straight line.

D.  

Non-linear relationship, as the Best Fit line is curvilinear.

A.  

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

B.  

Always trade against the prevailing trend

C.  

The future can be extrapolated based on present trends

D.  

Fundamental analysis is always wrong

A.  

Center limit theorem

B.  

Histogram

C.  

Central limit theorem

D.  

All of the above statements

A.  

Entering the market too soon

B.  

Exiting the market too soon

C.  

Abandoning well reasoned trading strategies due to adversity

D.  

All of the above

A.  

To help identify long-term variations from the short-term trend

B.  

To spot confirmations between technical indicators

C.  

To pinpoint the crossing of two moving averages

D.  

All of the above

A.  

Remove price trend

B.  

Switch time frames

C.  

Use only period extremes

D.  

None of the above

A.  

assume that current and recent conditions will prevail well into the future, also causing them to ignore the evidence of changing circumstances.

B.  

tend to be overconfident regarding their abilities and make major mistakes like too little diversification and over trading.

C.  

are tricked into thinking that they can foretell the future because they can easily observe the past.

D.  

try to identify patterns in financial markets that do not exist.

A.  

His work is valid for equities but does not apply to commodities

B.  

When price meets time, a change is imminent

C.  

Gann used 10%, 20%, 30% and 40% as his key resistance and retracement levels

D.  

Gann's work is an advanced interpretation of point and figure charts

A.  

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

B.  

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

C.  

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

D.  

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