The CMT Exam in Three Levels — 2026 PassCMT video transcript

1. The CMT Exam in Three Levels
Welcome to PassCMT. In this overview, we walk through the CMT exam's three levels — what each one emphasizes, and how the focus shifts from learning concepts to applying them in real market work. The weights we share come from the CMT Association's 2026 Program Guide.

2. Level I: The Foundation
Level I is the foundation. It tests introductory concepts and definitions. Expect questions on the evolution of technical analysis, key concepts, and behavioral finance, alongside chart construction, trends, patterns, indicators, and cycles. It also introduces statistics, volatility, systematic trading, cross-asset analysis, and risk principles.

3. Level I Weights
At Level I, Theory and History carries thirty-eight percent, Classical Techniques thirty-three, Advanced Techniques twenty-six, and Ethics three percent. That balance tells you something: the largest share rewards conceptual understanding, so definitions and theory deserve early, repeated attention.

4. Level II: Analysis and Application
Level II shifts from recall to analysis and application. Here you work with charts to plan entries and exits, build risk plans, and evaluate models. Asset weighting and volatility move to the foreground, and you're asked to reason through scenarios rather than simply recognize terms.

5. Level II Weights
The weights reflect that shift. Classical Techniques and Advanced Techniques each carry forty percent, while Theory and History drops to seven percent. Application of Technical Analysis appears at ten percent, and Ethics remains at three. Practice applying tools matters more than memorizing them.

6. A Practical Risk Example
Here is a simple risk plan. An entry at fifty dollars and a stop at forty-eight give two dollars of planned risk per share. A one-thousand-dollar risk budget allows five hundred shares before costs. If the stop is hit at forty-eight, the planned loss is one thousand dollars. Gaps and slippage can make the actual loss larger.

7. Level III: Integration
Level III integrates the full process. Application of Technical Analysis carries ninety-five percent, and Ethics five. The four-hour exam groups related items into cases that combine knowledge domains. It includes multiple choice, but most responses are short answers: state the decision and justify it with evidence, position sizing, and risk controls.

8. Ethics at Every Level
Ethics appears at every level. The CMT Association adopts the CFA Institute Code of Ethics and Standards of Professional Conduct. Use the CFA Institute Standards of Practice Handbook, which sits outside the CMT textbooks. Practice applying the standards to conflicts, research independence, and fair treatment of clients. Then use the official learning objectives to guide your technical study.

Source: CMT Association, CMT Program Guide 2026, pages 4–10.
https://cmtassociation.org/wp-content/uploads/2025/12/CMT-PROGRAM-GUIDE-2026-1.pdf