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| Section | Objectives |
|---|
| Topic 1: Classical Techniques | - Chart Pattern Analysis
- 1. Reversal Patterns
- 2. Continuation Patterns
- Cycles
- 1. Market Cycles
- 2. Seasonality
- Internal and External Technical Indicators
- 1. Momentum Indicators
- 2. Volume Indicators
- Chart Types and Construction
- 1. Line Charts
- 2. Candlestick Charts
- Trend Analysis
- 1. Support and Resistance
- 2. Trendlines and Channels
|
| Topic 2: Advanced Techniques | - Volatility Analysis
- 1. Volatility Indicators
- 2. Risk Measurement
- Cross-asset Analysis
- 1. Intermarket Relationships
- 2. Asset Correlation
- Systematic Trading
- 1. Backtesting
- 2. Trading Systems
- Statistical Analysis
- 1. Regression Analysis
- 2. Probability Concepts
- Principles of Risk Management
- 1. Portfolio Risk Control
- 2. Position Sizing
|
| Topic 3: Theory and History | - Behavioral Finance
- 1. Investor Psychology
- 2. Market Sentiment
- Evolution of Technical Analysis
- 1. History of Technical Analysis
- 2. Market Theory Foundations
- Key Concepts in Technical Analysis and Market Analysis
- 1. Market Trends
- 2. Price Discounting Mechanism
|
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CMT Association CMT Level 1 Exam Sample Questions (Q375-Q380):
NEW QUESTION # 375
The Elliott Wave pattern highlighted below (Chart showing A-B-C where B goes above A origin, C goes below A end) is:
- A. A regular flat
- B. An expanded flat
- C. A flat
- D. A running flat
Answer: B
Explanation:
Detailed Explanation:
In this pattern, Wave B travels beyond the start of Wave A (making a new high), and Wave C travels beyond the end of Wave A (making a new low). This "broadening" action defines an Expanded Flat (also called Irregular Flat).
---
NEW QUESTION # 376
Identify the Elliott Wave pattern highlighted below (Chart showing W-X-Y with sideways movement):
- A. Expanded flat
- B. Running flat
- C. Zigzag
- D. Regular flat
Answer: B
Explanation:
Detailed Explanation:
The chart labeled 104 shows a Running Flat (Wave B makes new high, Wave C fails to break Wave A low).
*Correction*: The chart labeled 104 in the PDF visual actually corresponds to question 105 or is a Running Flat structure. Checking key for 104: Key says B: Running Flat. A Running Flat is characterized by B breaking the high of A, but C *failing* to break the low of A, indicating strong underlying trend strength.
---
NEW QUESTION # 377
The body of the candlestick line displays the relationship between:79
- A. The current session's open and high82
- B. The current session's high and low80
- C. The current s83ession's open and close
- D. The current session's close and the prior session's close81
Answer: C
Explanation:
Detailed Explanation:
The "Real Body" of a Japanese candlestick represents the range between the Opening price and the Closing price. If the Close is higher than the Open, the body is white/green (bullish). If the Close is lower, it is black
/red (bearish).8485
NEW QUESTION # 378
When a bond's price is greater than 100, the yield is:
- A. Lower than the coupon rate
- B. Lower than the prime rate
- C. Higher than the coupon rate
- D. Lower than the discount rate
Answer: A
Explanation:
Detailed Explanation:
When a bond trades at a premium (price > 100/Par), the effective yield to the investor is lower than the coupon rate, because the investor is paying more upfront for the fixed coupon payments and will experience a capital loss at maturity (when it pays back 100).
NEW QUESTION # 379
After testing and refining a trading system, further validation should be done using data known as:
- A. Daily
- B. Out-of-sample
- C. Weekly
- D. In-sample
Answer: B
Explanation:
Detailed Explanation:
"In-sample" data is used to build/optimize the system. To verify it wasn't just "curve-fitted" to past data, it must be tested on unseen data that wasn't used in the creation process. This is called Out-of-Sample testing.
---
NEW QUESTION # 380
......
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