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CMT Program Dumps CMT-Level-II Exam for Full Questions - Exam Study Guide
NEW QUESTION # 122
Which of the following is considered a continuation pattern?
- A. Double top
- B. Inverse head and shoulders
- C. Triangle
- D. Head and shoulders
Answer: C
NEW QUESTION # 123
Which of the following is the formula for calculating RSI?
- A. RSI = 100 - (100/(1 X RS))
- B. RSI = 100 - (100/(100 + RS))
- C. RSI = 100 + (100/(1 + RS))
- D. RSI = 100 - (100/(1 + RS))
Answer: D
NEW QUESTION # 124
For a swing trader, which of the following is valid stochastic sell signal except:
- A. B
- B. C
- C. D
- D. A
Answer: C
NEW QUESTION # 125
Which of the following is a FALSE statement about MACD?
- A. If MACD has had a positive value for more than 12 periods, this is predictive of a reversal.
- B. The signal line is also a moving average
- C. It is most useful in a trending market
- D. The calculation does not use any simple moving averages
Answer: A
NEW QUESTION # 126
Most of these indicators measure what uninformed investors are doing.
- A. Sentiment indicators
- B. Flow of Funds indicators
- C. Breadth indicators
- D. Cycle indicators
Answer: A
NEW QUESTION # 127
Why is it important to ignore opinions and focus on facts in market analysis?
- A. Unexpected news does not get factored into the market
- B. Opinions are not generally discounted by the market
- C. Stock market news is more important than general news in determining the future direction of the markets
- D. General news reflects slowly unfolding economic and financial trends not yet discounted by the markets
Answer: D
NEW QUESTION # 128
According to Kirkpatrick and Dahlquist, during emotional times, flow of funds signals:
- A. Suggests the duration of the next downleg in the market cycle
- B. Appear to work poorly because price seems to divorce itself from economics.
- C. Appear to work exceptionally well because of the market's flight to safety.
- D. Function no differently than at any other time in the market cycle because of shortcomings in the measurement procedures.
Answer: B
NEW QUESTION # 129
Which of the following is considered a reversal pattern in candlestick charting?
- A. Rising three methods
- B. Windows
- C. Falling three methods
- D. Hanging man
Answer: D
NEW QUESTION # 130
ALL of the following are standard patterns used with 3-Box reversal point and figure charts, EXCEPT:
- A. Double Top or Double Bottom
- B. Bullish or Bearish Triangle
- C. Bullish or Bearish Fulcrum
- D. Triple Top or Triple Bottom
Answer: C
NEW QUESTION # 131
How would a technician utilize a support line which has been broken?
- A. A broken support line no longer has a valid technical interpretation
- B. The support line now becomes a resistance line
- C. The break in the support line would be a buy signal
- D. The break in the support line is of no technical importance
Answer: B
NEW QUESTION # 132
Which of the following BEST describes equity market performance during the presidential election cycle:
- A. Market has its strongest year during first year of president's term, posts its worst returns during the pre-election year and slightly negative returns in election years
- B. Market has a below average year during first year of president's term, posts its strongest returns in the second year and reasonably strong returns during the pre-election and election years
- C. Market has a below average year during first year of president's term, posts its strongest returns during the pre-election year or in the election year
- D. Market has an above average year during first year of president's term, posts negative returns during the pre-election year and its strongest returns in election years
Answer: C
NEW QUESTION # 133
Which of the following is true of Bollinger Bands?
- A. When price equals the upper band it is considered bullish
- B. The bands are based on moving averages of prices plus or minus a standard deviation factor
- C. The bands are based on the moving averages of prices
- D. When prices are above the upper band they are considered to be in oversold territory
Answer: B
NEW QUESTION # 134
Which of the following is a CORRECT interpretation of volume?
- A. In an uptrend, volume should increase on down days
- B. Volume precedes price
- C. In a downtrend, volume should increase on up days
- D. Price precedes volume
Answer: B
NEW QUESTION # 135
Which of the following is GENERALLY true of financial media explanations for market moves?
- A. These stories are generally the authoritative explanation of market moves
- B. Such stories are essentially gossip
- C. Price movements are not news
- D. These stories uncover the true underlying drivers of the market
Answer: B
NEW QUESTION # 136
Paul Jones is a chemical industry research analyst for a large brokerage company. That industry is currently seeing an increase in mergers and acquisitions. While flying through Chicago, Jones sees several senior officers who she knows are from the largest and fourth largest chemical companies walk into a conference room. She concludes that negotiations for an acquisition might be taking place. Jones:
- A. may not act but advise others to act on this information.
- B. may not act or cause others to act on this information.
- C. should inform her compliance officer that she has material nonpublic information on firms she covers.
- D. may use this information to support an investment recommendation.
Answer: D
NEW QUESTION # 137
Which of the following would NOT be true in designing a trading system utilizing bands?
- A. Buy when prices penetrate the upper band
- B. Sell when price breaks below the lower band
- C. Close out shorts when prices reverse and go below the center of the band
- D. Close out longs when prices reverse and go below the center of the band
Answer: C
NEW QUESTION # 138
Which of the following would not be a violation of the Code of Ethics in a published research report or statement?
- A. Estimates which are subject to change
- B. Statements which disparage the work of other analysts
- C. Statements inconsistent with the accumulated knowledge of technical analysis
- D. Inaccurate information
Answer: A
NEW QUESTION # 139
When analyzing price action and volume, low activity (or a drop in volume) is normally associated with:
- A. lack of conviction on the part of traders.
- B. a strengthening price trend.
- C. a weak price trend.
- D. greater fluctuations in price.
Answer: A
NEW QUESTION # 140
Which of the following is a continuation pattern:
- A. Broadening top
- B. V-bottom
- C. Wedge
- D. Head and shoulders
Answer: C
NEW QUESTION # 141
Which of the following is an INCORRECT interpretation of the candlestick piercing pattern?
- A. The greater the penetration into the price levels of the prior day's real body, the greater predictive power
- B. It is a bullish reversal pattern
- C. It is the opposite of the dark cloud cover
- D. It is preceded by a market uptrend
Answer: D
NEW QUESTION # 142
Which of the following is not a disadvantage of the patterns that are formed by Broadening formations?
- A. The breakout lines are moving permanently away from each other
- B. They are hard to make the most of the profit
- C. They are often difficult to identify
- D. They are relatively common in occurrence
Answer: D
NEW QUESTION # 143
What is the proper use of long-term charts versus daily price charts?
- A. Daily price charts allow for a better assessment of the price trend
- B. Long-term charts are more useful for making trading decisions
- C. Long-term charts allow for a better assessment of the price trend
- D. Daily price charts allow for a thorough trend analysis
Answer: C
NEW QUESTION # 144
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