CMT Exam Level 1 Free Practice Questions & Answers
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CMT Exam Level One Free Resources
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Question 1 of 30
1. Question
Taking trading diamonds into consideration how do we determine the price objective?
Correct
The diamond formation, once properly defined, tends to have a fast-moving price run on the breakout. The price target is typically the distance traveled by the entry price to get to the gem. In general, a steep entrance is followed by a steep exit.
Incorrect
The diamond formation, once properly defined, tends to have a fast-moving price run on the breakout. The price target is typically the distance traveled by the entry price to get to the gem. In general, a steep entrance is followed by a steep exit.
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Question 2 of 30
2. Question
Which of the following fact is not correct when talking about wedge patterns?
Correct
A wedge pattern is a pattern of triangles with both trend lines going in the same direction. A rising wedge has both borders heading upward, the lower border moving faster than the upper border.
Incorrect
A wedge pattern is a pattern of triangles with both trend lines going in the same direction. A rising wedge has both borders heading upward, the lower border moving faster than the upper border.
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Question 3 of 30
3. Question
Which of the following fact is used to distinguish between the rising and a falling wedge pattern?
Correct
The declining coil has both lines headed down, with the bounded upward falls faster than the lower bound. In the future, as in a standard triangle, the lines will cross, and the nomenclature for the crossover and height is identical.
Incorrect
The declining coil has both lines headed down, with the bounded upward falls faster than the lower bound. In the future, as in a standard triangle, the lines will cross, and the nomenclature for the crossover and height is identical.
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Question 4 of 30
4. Question
What is the outcome if a later rally within the channel fails to reach the channel line? Select the best possible outcome.
Correct
When a subsequent rally inside the channel fails to hit the channel line, the current channel line will have a lower slope than the underlying trend line from the latest downward reversal and the last downward reversal, which will ultimately follow the trend line when projected into the future.
Incorrect
When a subsequent rally inside the channel fails to hit the channel line, the current channel line will have a lower slope than the underlying trend line from the latest downward reversal and the last downward reversal, which will ultimately follow the trend line when projected into the future.
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Question 5 of 30
5. Question
What is the possible outcome when the downward reversal will have a lesser slope than the underlying trend line?
Correct
The downward reversal would have a lower slope than the underlying trend line, which will ultimately follow the trend line if projected into the future. This new channel and trend line configuration is an ascending wedge. It indicates that sellers are a little more nervous than it implies before, and by default, that the trend line will soon split
Incorrect
The downward reversal would have a lower slope than the underlying trend line, which will ultimately follow the trend line if projected into the future. This new channel and trend line configuration is an ascending wedge. It indicates that sellers are a little more nervous than it implies before, and by default, that the trend line will soon split
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Question 6 of 30
6. Question
According to Bulkowski what is the percentage of almost all declining and rising wedges to break out?
Correct
According to Bulkowski nearly all decreasing wedges (92%) break upwards, and most rising wedges (69%) break downwards.
Incorrect
According to Bulkowski nearly all decreasing wedges (92%) break upwards, and most rising wedges (69%) break downwards.
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Question 7 of 30
7. Question
Which of the following is not a fact regarding the Rising Wedges? Choose the best possible answer.
Correct
Rising wedges occur either during a lengthy downward price trend or after a climax upward. Some that take place during a downtrend tend to be very low rallies against trend. As previously reported, they inevitably break to the downside again and start the downtrend. Declining wedges are almost the same pattern and only occur in the opposite direction under similar circumstances.
Incorrect
Rising wedges occur either during a lengthy downward price trend or after a climax upward. Some that take place during a downtrend tend to be very low rallies against trend. As previously reported, they inevitably break to the downside again and start the downtrend. Declining wedges are almost the same pattern and only occur in the opposite direction under similar circumstances.
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Question 8 of 30
8. Question
Which of the following statement is not an outcome of a market climax regarding pattern analysis?
Correct
Market equilibrium occurs when prices escalate. At these times, the underlying trend line is changed slowly at a steeper slope in the direction of prices. Prices. The support reversal points occur at rates higher than the expected trend line in an upward accelerated trend and trigger the trend line to be changed to a steeper slope.
Incorrect
Market equilibrium occurs when prices escalate. At these times, the underlying trend line is changed slowly at a steeper slope in the direction of prices. Prices. The support reversal points occur at rates higher than the expected trend line in an upward accelerated trend and trigger the trend line to be changed to a steeper slope.
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Question 9 of 30
9. Question
What is the condition for an upward accelerated trend regarding pattern analysis?
Correct
The support reversal points occur at rates higher than the expected trend line in an upward accelerated trend, and cause the trend line to be changed to a steeper slope.
Incorrect
The support reversal points occur at rates higher than the expected trend line in an upward accelerated trend, and cause the trend line to be changed to a steeper slope.
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Question 10 of 30
10. Question
When talking about Volume Statistics which of the following is not considered as a fact of Volume Statistics?
Correct
Volume measures and signals are commonly extracted from a shift in volume rather than from volume itself. Volume can be a measure of liquidity in security by itself, but it is not useful for price analysis. In every protection, the volume is normally different.
Incorrect
Volume measures and signals are commonly extracted from a shift in volume rather than from volume itself. Volume can be a measure of liquidity in security by itself, but it is not useful for price analysis. In every protection, the volume is normally different.
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Question 11 of 30
11. Question
Which of the following is true regarding the price change that occurs due to high ad low volume trends?
Correct
At high volume price shifts tend to occur in the direction of a trend, and price shifts at small volumes continue to occur in the wake of corrective market movements.
Incorrect
At high volume price shifts tend to occur in the direction of a trend, and price shifts at small volumes continue to occur in the wake of corrective market movements.
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Question 12 of 30
12. Question
What happens to the volume of the product when the prices are rising according to the rules advised by H. M. Gartley?
Correct
When prices are rising:
a) Volume increasing is impressive
b) Volume decreasing is questionableIncorrect
When prices are rising:
a) Volume increasing is impressive
b) Volume decreasing is questionable -
Question 13 of 30
13. Question
At what position does the pattern occur when a price decline halts with high volume?
Correct
When a high volume price advance stops it is theoretically a top. If a high volume demand fall ends, this is theoretically a bottom.
Incorrect
When a high volume price advance stops it is theoretically a top. If a high volume demand fall ends, this is theoretically a bottom.
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Question 14 of 30
14. Question
Using the top-down analysis, which of the following factors are considered used for this type of analysis of the future market?
Correct
Top-down research starts with a review of the global markets such as interest rates, currencies, and stock markets to assess which market would have the greatest potential for future benefit.
Incorrect
Top-down research starts with a review of the global markets such as interest rates, currencies, and stock markets to assess which market would have the greatest potential for future benefit.
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Question 15 of 30
15. Question
Which of the following steps are not included in the design pattern needed to build a successful system?
Correct
Some of the characteristics of the necessary mindset include the following:
(a) Realize that losses will occur—keep them small and infrequent
(b) Realize that profits will not necessarily occur constantly or consistently
(c) Be organized—winging it will not work
(d) Test, test, and test again, without curve-fitting
(e) Develop a plan consistent with one’s time available and investment horizon—daily, weekly, monthly, and yearlyIncorrect
Some of the characteristics of the necessary mindset include the following:
(a) Realize that losses will occur—keep them small and infrequent
(b) Realize that profits will not necessarily occur constantly or consistently
(c) Be organized—winging it will not work
(d) Test, test, and test again, without curve-fitting
(e) Develop a plan consistent with one’s time available and investment horizon—daily, weekly, monthly, and yearly -
Question 16 of 30
16. Question
When talking about cycles which of the following is not a characteristic of the right translation?
Correct
This motion of the actual top past the midpoint of the cycle is referred to as proper translation and is a feature of all peaks
while ruled with the aid of using the energy of a longer, growing trend.Incorrect
This motion of the actual top past the midpoint of the cycle is referred to as proper translation and is a feature of all peaks
while ruled with the aid of using the energy of a longer, growing trend. -
Question 17 of 30
17. Question
Which of the following is not an advantage of using the Translation regarding the cycles?
Correct
The translation is, in this manner, valuable in checking where the overlying longer-term cycle pattern bearing is going or on the off chance that it is altering the course.
Incorrect
The translation is, in this manner, valuable in checking where the overlying longer-term cycle pattern bearing is going or on the off chance that it is altering the course.
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Question 18 of 30
18. Question
Which is the simplest method used for the wave analysis in a time-series data?
Correct
The most widely recognized and easiest strategy for wave examination in a period arrangement information is Fourier analysis. Fourier investigation, accessible in many science programming programs, has numerous varieties. It has explicit issues, in any case, in that it requires a lot of information.
Incorrect
The most widely recognized and easiest strategy for wave examination in a period arrangement information is Fourier analysis. Fourier investigation, accessible in many science programming programs, has numerous varieties. It has explicit issues, in any case, in that it requires a lot of information.
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Question 19 of 30
19. Question
Which is the advanced method of demonstrating transforms as Fourier analysis should be used only as a basic method of analyzing cycles in
market time-series data?Correct
A quicker strategy, called Fast Fourier Transforms (FFTs), diminishes the calculation time of the examination. A second issue with Fourier investigation is that it doesn’t keep up the stage connections between cycles. At the end of the day, on the off chance that one cycle crosses the level hub after or before another, the distinction in these stages isn’t recorded.
Incorrect
A quicker strategy, called Fast Fourier Transforms (FFTs), diminishes the calculation time of the examination. A second issue with Fourier investigation is that it doesn’t keep up the stage connections between cycles. At the end of the day, on the off chance that one cycle crosses the level hub after or before another, the distinction in these stages isn’t recorded.
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Question 20 of 30
20. Question
Which of the following method is not used to calculate the transform of that waves both in time and frequency domains?
Correct
The methods used to calculate transform are:
a) Fourier Analysis
b) Maximum Entropy Spectral Analysis
c) Fast Fourier TransformIncorrect
The methods used to calculate transform are:
a) Fourier Analysis
b) Maximum Entropy Spectral Analysis
c) Fast Fourier Transform -
Question 21 of 30
21. Question
Which of the following statement is the reason behind using the Detrending , method when talking about the cycles?
Correct
Detrending is done simply by partitioning the current costs by a moving normal of those costs. The subsequent plot will sway above and under a zero line, and the lows of the plot will relate to the lows in the cycle being investigated.
Incorrect
Detrending is done simply by partitioning the current costs by a moving normal of those costs. The subsequent plot will sway above and under a zero line, and the lows of the plot will relate to the lows in the cycle being investigated.
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Question 22 of 30
22. Question
What is the mathematical representation of calculating the detrended line?
Correct
The detrended line is constructed by dividing the current closing price by an 11-day SMA. The cycle with 35 days (slightly
shorter than the ideal 40 days) shows up clearly in the plot.Incorrect
The detrended line is constructed by dividing the current closing price by an 11-day SMA. The cycle with 35 days (slightly
shorter than the ideal 40 days) shows up clearly in the plot. -
Question 23 of 30
23. Question
What is the outcome when prices are detrended using the daily closing price as the numerator?
Correct
At the point when costs are detrended utilizing the day by day shutting cost as the numerator, particularly as we extend the denominator, the plot turns out to be extremely unpredictable and hard to decipher. The arrangement is to utilize a moving normally in the numerator also, however, this presents a few issues that must initially be tended to.
Incorrect
At the point when costs are detrended utilizing the day by day shutting cost as the numerator, particularly as we extend the denominator, the plot turns out to be extremely unpredictable and hard to decipher. The arrangement is to utilize a moving normally in the numerator also, however, this presents a few issues that must initially be tended to.
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Question 24 of 30
24. Question
When using a centered moving average plot which of the following can not be determined by using this method to plot?
Correct
The centered moving average plot is a better representation of prices but, of course, lags behind prices and by itself cannot be used as a signaling method. It is used to identify cycles but not to predict them.
Incorrect
The centered moving average plot is a better representation of prices but, of course, lags behind prices and by itself cannot be used as a signaling method. It is used to identify cycles but not to predict them.
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Question 25 of 30
25. Question
Which of the following is not a representation of a moving average? Select the best possible option.
Correct
A moving normal speaks to value motions more prominent than the time of the moving normal and viably offsets value activity or motions not exactly the moving normal period.
Incorrect
A moving normal speaks to value motions more prominent than the time of the moving normal and viably offsets value activity or motions not exactly the moving normal period.
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Question 26 of 30
26. Question
What is the method of calculating the range of price movement about this moving average?
Correct
To measure the scope of value development about this moving normal, we draw an envelope corresponding with the moving normal.
Incorrect
To measure the scope of value development about this moving normal, we draw an envelope corresponding with the moving normal.
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Question 27 of 30
27. Question
When using envelope which of the following is the reason behind its inaccurate results keeping in mind the concepts of Cycles?
Correct
By one way or another we have lost accuracy with envelopes. This is likely in light of the fact that higher-request cycles are drifting so firmly that the shorter cycles are being hosed out.
Incorrect
By one way or another we have lost accuracy with envelopes. This is likely in light of the fact that higher-request cycles are drifting so firmly that the shorter cycles are being hosed out.
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Question 28 of 30
28. Question
Which of the following statement is not a relationship between the prices of the goods and the buyers and the sellers of the market?
Correct
When prices are slowly increasing, for example, then buyers must have more optimistic expectations and be willing and able to put more money into a security. Contrary to that, if prices go down, buyers tend to have more negative perceptions and greater sales positions. The price trend, therefore, tells us how much control, aggressiveness, and anxiety there is to buy or sell every security on the marketplace.
Incorrect
When prices are slowly increasing, for example, then buyers must have more optimistic expectations and be willing and able to put more money into a security. Contrary to that, if prices go down, buyers tend to have more negative perceptions and greater sales positions. The price trend, therefore, tells us how much control, aggressiveness, and anxiety there is to buy or sell every security on the marketplace.
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Question 29 of 30
29. Question
Which of the following cannot be studied using technical analysis in the auction markets?
Correct
Technical research can be used to analyze certain auction markets, while others can not. Auction markets in paintings, for instance, should not be subject to technical examination since a painting is special and can not be replaced with another painting.
Incorrect
Technical research can be used to analyze certain auction markets, while others can not. Auction markets in paintings, for instance, should not be subject to technical examination since a painting is special and can not be replaced with another painting.
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Question 30 of 30
30. Question
In the commodities markets, what is the result of incorrect calculation of the time and price linkage between contracts is called?
Correct
In commodity markets, since contracts have a settlement date at which trading stops can affect longer-term technical patterns and trends, incorrect measurement of the time and price correlation between contracts. The results are either called’ nearest future,” perpetual series’ or’ continuous series’ and are given by several data vendors and exchanges
Incorrect
In commodity markets, since contracts have a settlement date at which trading stops can affect longer-term technical patterns and trends, incorrect measurement of the time and price correlation between contracts. The results are either called’ nearest future,” perpetual series’ or’ continuous series’ and are given by several data vendors and exchanges
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