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Last Updated: Oct 03, 2026

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CMT Association CMT-Level-I Practice Q&A's

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CMT Association CMT-Level-I Exam Syllabus Topics:

SectionObjectives
Topic 1: Classical Techniques- Internal and External Technical Indicators
  • 1. Momentum Indicators
  • 2. Volume Indicators
- Cycles
  • 1. Seasonality
  • 2. Market Cycles
- Trend Analysis
  • 1. Trendlines and Channels
  • 2. Support and Resistance
- Chart Pattern Analysis
  • 1. Continuation Patterns
  • 2. Reversal Patterns
- Chart Types and Construction
  • 1. Line Charts
  • 2. Candlestick Charts
Topic 2: Advanced Techniques- Statistical Analysis
  • 1. Regression Analysis
  • 2. Probability Concepts
- Cross-asset Analysis
  • 1. Asset Correlation
  • 2. Intermarket Relationships
- Volatility Analysis
  • 1. Volatility Indicators
  • 2. Risk Measurement
- Principles of Risk Management
  • 1. Position Sizing
  • 2. Portfolio Risk Control
- Systematic Trading
  • 1. Trading Systems
  • 2. Backtesting
Topic 3: Theory and History- Key Concepts in Technical Analysis and Market Analysis
  • 1. Market Trends
  • 2. Price Discounting Mechanism
- Behavioral Finance
  • 1. Investor Psychology
  • 2. Market Sentiment
- Evolution of Technical Analysis
  • 1. Market Theory Foundations
  • 2. History of Technical Analysis

CMT Association CMT Level 1 Sample Questions:

Question #1

ADX has _______ number of lines indicating the overall direction in which a trade should be taken.

  • A. 4
  • B. 3
  • C. 2 or 3
  • D. 2
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

The interchangeability of a financial instrument is normally referred to as:

  • A. Backwardation
  • B. Arbitraging
  • C. Fungibility
  • D. Hedging
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

A REASONABLE price objective once a stock has completed a head and shoulders pattern is:

  • A. 100% of the previous trend
  • B. Equivalent to the distance between the head and neckline
  • C. Depends on the action of the accompanying volume5152
  • D. Derived using the Fibonacci Ratio
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

The chart formation highlighted below is a:

  • A. Triangle
  • B. Pennant
  • C. Flag
  • D. Rising wedge
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Correct Answer: C  🗳️

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Question #5

In constructing a point and figure chart, a new box is added ONLY when:

  • A. The price has moved to a new high
  • B. The price has moved by less than the specified box size
  • C. The volume confirms the price movement
  • D. The price has moved by equal to or more than the specified box size
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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