CMT
Level
1
Introductory
Practice
Exam
For
more
CMT
study
prep
materials
please
visit
www.MarketTechLab.com
1. Which
of
the
items
below
affect
market
prices?
I. Fear,
greed,
arrogance
II. Earnings
estimates
and
earnings
reports
III. Economic
cycles,
investor
mood,
and
market
tone
IV. Interest
rates
a.) II
only
b.) II
and
IV
c.) I,
III,
and
IV
d.) All
of
the
above
2. Which
statement
best
reflects
the
significance
of
stock
prices
and
round
numbers:
a.) A
stock
will
always
advance
higher
than
the
closest
round
number
in
a
bull
market.
b.) A
stock
will
always
decline
lower
than
the
closest
round
number
in
a
bear
market
c.) If
advancing,
a
stock
will
likely
meet
resistance
at
a
round
number,
especially
if
it
is
also
an
all-time
high
d.) If
advancing,
a
stock
will
likely
gap
over
round
numbers,
missing
them
entirely
3. Based
on
historic
averages,
at
what
time
(EST)
during
the
day
would
one
expect
to
find
the
largest
upward
bias
in
prices?
a.) Between
11:30am
and
12:30pm
b.) Between
3:15pm
and
3:45pm
c.) The
first
15
minutes
the
market
is
open
d.) The
last
15
minutes
the
market
is
open
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4. After a lengthy advance, a broadening formation followed by a symmetrical triangle would likely be forming: a.) A diamond top b.) A head-and-shoulders top c.) A rounding top d.) A one-day reversal 5. Of the following, which one is NOT typically a major reversal pattern? a.) Head-and-Shoulders b.) Rounding turns c.) Pennants d.) Symmetrical triangles 6. The indicator that measures relative volume in advancing stocks vs. declining stocks is: a.) The Arms Index b.) The Advance/Decline Line c.) The Chaiken Oscillator d.) The RSI 7. According to the chart below, candle A. opened at ____, and closed at ____.
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a.) b.) c.) d.) $14, $13 $13, $14 $14, $12 $12, $13
8. The high low logic index is the lesser of which two ratios? I. The number of weekly new highs to total issues II. The number of weekly new lows to total issues III. The quantity of weekly advancing volume to total issues IV. The quantity of weekly declining volume to total issues a.) I and III b.) I and II c.) III and IV d.) I and IV 9. This moving average takes into account the average for price and time, and is used to identify the cyclical nature of trends: a.) envelopes b.) an exponential moving average c.) a simple moving average d.) a centered moving average 10. A pullback is: a.) A rally after a downside breakout b.) A sustained market decline c.) A reaction after an upside breakout d.) A type of oscillator 11. One would use ratio analysis to: a.) Determine whether a stock is above or below its moving average b.) Determine if the markets are likely to experience a significant decline in the near future c.) Analyze the effectiveness of support and resistance for a particular stock d.) Compare different markets to see which is performing most favorably For more CMT study prep materials please visit
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13. Choose the answer that best describes the order a technician practicing top- down analysis would study the market: a.) The general market, individual companies, then sectors b.) The general market, sectors, then individual companies c.) Sectors, the general market, then individual companies d.) Stocks, sectors, then the general market 14. The normal and expected property of any reaction going against a prevailing primary trend as defined by Edwards and Magee is: a.) Increasing fervor b.) Diminishing vigor c.) Volatility d.) Stability
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15. One would expect to commonly find these formations in a bear market: a.) Broadening formations b.) Falling Wedges c.) Rising Wedges d.) Rounding tops 16. A blue line as defined by Edwards and Magee is: a.) A trend line connecting the price peaks of a security b.) A trend line connecting the price troughs of a security c.) A trend line connecting the troughs of a security whose price is flat d.) The line that results from plotting a tangent equal to the highest price slope 17. The net amount of any group of market players optimism or pessimism reflected in any asset or market price at a particular time would best be defined as: a.) Net ticks b.) Net News Impact c.) Overhead resistance d.) Sentiment 18. The 3-bar pattern outlined below can best be described as:
a.) b.) c.) d.) A point A three-bar squeeze A horn pattern A shark pattern
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19. One of the largest problems for technical analysts is representation. Representation can best be defined as: a.) The recognition of patterns where they do not exist b.) The event that occurs when a pattern becomes too identifiable among analysts, negating its importance c.) The process of using a short-term pattern to draw inferences for long-term prices d.) The theory that states that one pattern must always carry the same implications 20. The fractal nature of trends refers to: a.) The ability of trends to fracture and become inconsequential b.) The nature of trends to have their implications known before the trend is finished developing c.) The nature of trends to have the same characteristics regardless of the time the trend spans d.) The nature of trends to have the same meaning if identified in two different securities 21. A ninety-percent downside day, or NPDD, occurs when: a.) Ninety-percent of all stocks are down for the day b.) Ninety-percent of all volume is to the downside for the day c.) Downside volume exceeds the cumulative total of upside and downside volume by 90% AND the percentage of downside points exceeds the cumulative total of all points gained or lost by 90% d.) The major averages are down by at least 90% for the day
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22. The following trend lines annotated on the chart below are collectively known as:
a.) b.) c.) d.) A spear Poseidons Trident Wilders Wrench Andrews Pitchfork
23. One of the most widely accepted stock cycles, this cycle has a tendency to repeat itself roughly once every 41-months and did so with remarkable consistency during the period from 1796 to 1923: a.) The Popular Cycle b.) The Kondratieff Cycle c.) The Presidential Cycle d.) The Long Wave Cycle 24. The process of continuously raising a stop order to adjust for volatility and new highs using ATR is known as: a.) A time stop b.) A Chandelier exit c.) A Hanging Man d.) Parabolic SAR
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25.
The
Drop-off
Effect
is
the
result
of:
a.)
The
deletion
of
the
earliest
data
from
a
moving
average
b.)
A
precipitous
price
decline
c.)
The
inclusion
of
more
price
data
in
an
extended
moving
average
d.)
Daily
or
weekly
price
data
that
is
excluded
from
a
chart
with
every
new
daily
or
weekly
price
data
input
*Please
note
that
these
questions
have
not
been
tested
nor
analyzed
to
ensure
that
they
perform
as
expected
through
psychometrics
analysis.
*
These
questions
are
completely
original
and
were
designed
solely
to
test
the
material
covered
in
Technical
Analysis
of
Stock
Trends
(Edwards,
Magee),
Technical
Analysis
Explained
(Pring),
and
Technical
Analysis
(Dahlquist,
Kirkpatrick).
The
purpose
of
these
questions
is
to
aid
students
in
learning
the
aforementioned
material.
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