Updated Dec 17, 2021 CMT-Level-II Exam Dumps - PDF Questions and Testing Engine
New (2021) CMT Association CMT-Level-II Exam Dumps
NEW QUESTION 14
Extrapolation errors occur when investors:
- 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.
Answer: A
NEW QUESTION 15
What of the following could be utilized in a computerized trading system to improve the performance of Wilder's Parabolic System?
- A. Trend lines
- B. Average divergence index
- C. Stops
- D. Directional movement index
Answer: D
NEW QUESTION 16
Which of the following are true of the concepts of divergence and confirmation in technical analysis
- A. Confirmation has a valid technical interpretation but in the case of divergence, no valid conclusion can be drawn
- B. They are opposite concepts
- C. Divergence indicates continuation in trend since different technical indicators do not agree
- D. Confirmation indicates a likely change in trend since all technical indicators are in agreement
Answer: B
NEW QUESTION 17
Which of the following would not be a violation of the Code of Ethics in a published research report or statement?
- A. Inaccurate information
- B. Estimates which are subject to change
- C. Statements inconsistent with the accumulated knowledge of technical analysis
- D. Statements which disparage the work of other analysts
Answer: B
NEW QUESTION 18
Which of the following factors would increase the predictive power of the evening star pattern?
- A. If there is no overlap among the real bodies of the candles in the pattern
- B. If the last candle closes deeply into the body of the first candle
- C. All of the above
- D. If there is light volume on the first candle of the pattern and heavy volume on the last candle of the pattern
Answer: C
NEW QUESTION 19
Which of the following scale is used to plot data for investment and trading?
- A. The arithmetic scale is preferred
- B. A logarithmic or a linear scale is preferred
- C. A linear scale is preferred
- D. A logarithmic scale is preferred
Answer: A
NEW QUESTION 20
In regards to cycle analysis, translation is:
- A. Useful in checking where the trend direction is headed or if it is changing
- B. To the left when the peak is beyond the halfway point
- C. Distance between troughs
- D. Distance between peaks
Answer: A
NEW QUESTION 21
If the upper breakout level is getting higher and higher along the upper trend line which of the following statement is not predicted correctly about this trend?
- A. It using up much of any potential gain just before a breakout
- B. It is increasing the risk
- C. It is also moving farther from any realistic protective stop level
- D. It using up much of any potential gain after a breakout
Answer: A
NEW QUESTION 22
Why is it important to ignore opinions and focus on facts in market analysis?
- A. Stock market news is more important than general news in determining the future direction of the markets
- B. General news reflects slowly unfolding economic and financial trends not yet discounted by the markets
- C. Unexpected news does not get factored into the market
- D. Opinions are not generally discounted by the market
Answer: B
NEW QUESTION 23
How would one improve a trading system utilizing band penetrations as trading signals which is giving too many unprofitable trade signals?
- A. Utilize stop loss orders
- B. Utilize a shorter time horizon
- C. Widen the bands
- D. Narrow the bands
Answer: C
NEW QUESTION 24
The strength and direction of the relationship between two markets is measured by:
- A. moving Average.
- B. regression.
- C. spread.
- D. correlation coefficient.
Answer: D
NEW QUESTION 25
Which of the following figures can not be plotted on a point and figure chart when we have to plot months and years together? Choose the best possible answer.
- A. The year is displayed at the bottom of the column and the month is not plotted
- B. The month is displayed at the bottom of the column and the year is not plotted
- C. The year is displayed at the bottom of the column and the number of the month is plotted instead of the X or O
- D. The month is displayed at the bottom of the column and the number of the year is plotted instead of the X or O
Answer: C
NEW QUESTION 26
A trend-based trading system where the trend is the weighting of the recent closing prices by a smoothing constant:
- A. N-day break
- B. Exponential smoothing
- C. Point and figure
- D. Simple moving average
Answer: B
NEW QUESTION 27
An analyst has several groups of clients who are categorized according to their specific needs. Compared to research reports distributed to all of the clients, reports for a specific group:
- A. will definitely include more basic facts.
- B. may generally exclude more basic facts.
- C. will not be allowed because it violates the Standard III(B), Fair Dealing.
- D. cannot be selectively distributed.
Answer: B
NEW QUESTION 28
What two characteristics MUST a cycle possess in order for it to be traded rationally:
- A. There must be confidence that the cycle will continue and it must be synchronized with another cycle
- B. There must be a reason for its existence and it must have regular intervals between peaks
- C. There must be a reason for its existence and confidence that it will continue
- D. There must be a way to forecast it and it must be synchronized with another cycle
Answer: C
NEW QUESTION 29
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