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CMT Association CMT-Level-II Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Advanced Techniques | 40% | - Systematic Trading Approaches - Cross-Asset and Intermarket Analysis - Risk Management Principles - Statistical Analysis Methods - Volatility Analysis and Measures |
| Ethics and Professional Standards | 3% | - Standards of Professional Conduct - CMT Code of Ethics |
| Application of Technical Analysis | 10% | - Chart Interpretation for Entry/Exit Decisions - Risk Assessment and Planning - Model Evaluation and Implementation - Asset Allocation Using Relative Strength |
| Classical Techniques | 40% | - Chart Types and Construction - Price and Volume Cycles - Internal and External Technical Indicators - Trend Analysis and Confirmation - Chart Pattern Recognition and Interpretation |
| Theory and History | 7% | - Key Concepts in Market Analysis - Behavioral Finance Principles - Evolution of Technical Analysis |
CMT Association CMT Level II Sample Questions:
Interpret the relationship between the S&P 500 and the NASDAQ 100 indexes based on the chart shown below, if the Pearson's coefficient of correlation is 0.45:
- A. Linear relationship, as points fall generally along a straight line.
- B. Non-linear relationship, as the Best Fit line is curvilinear.
- C. Linear relationship, as the Best Fit line is curvilinear.
- D. Non-linear relationship, as points fall generally along a straight line.
Correct Answer: B 🗳️
Which of the following is the best combination which results in respect to the volume and pullback in Diamond Top pattern?
- A. The best combination is when there is an upward breakout on less than normal breakout volume with no pullback
- B. The best combination is when a downward breakout happens on an under-average amount of breakout with no pullback
- C. The best combination is when there is a downward breakout at an above-average breakout rate with few pullbacks
- D. The best mix is when there is a downward breakout on less than normal breakout rate and with few pullbacks
Correct Answer: B 🗳️
Which of the following is NOT true in chart interpretation:
- A. A price chart is a representation of human behavior
- B. The behavioral aspects of prices are irrational
- C. Chart patterns can be caused by commonly used trading techniques
- D. The goal is to find consistent, reliable and logical patterns
Correct Answer: B 🗳️
The strength and direction of the relationship between two markets is measured by:
- A. spread.
- B. regression.
- C. correlation coefficient.
- D. moving Average.
Correct Answer: C 🗳️
What two characteristics MUST a cycle possess in order for it to be traded rationally:
- A. There must be a reason for its existence and it must have regular intervals between peaks
- B. There must be confidence that the cycle will continue and it must be synchronized with another cycle
- C. There must be a way to forecast it and it must be synchronized with another cycle
- D. There must be a reason for its existence and confidence that it will continue
Correct Answer: D 🗳️
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