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| Section | Objectives |
|---|
| Basic Tools of Technical Analysis | - Market terminology and definitions - Dow Theory fundamentals - Trend identification concepts
|
| Technical Indicators | - Trend-following indicators - Volume-based indicators - Momentum indicators
|
| Chart Analysis | - Support and resistance - Classical chart patterns - Chart types and construction
|
| Risk Management and Professional Ethics | - Risk measurement and position sizing - Trading discipline principles - Ethical standards in technical analysis
|
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CMT Association CMT Level 1 Exam Sample Questions (Q286-Q291):
NEW QUESTION # 286
In tweezers tops candlestick patterns, the two candles must have:
- A. Shaven tops
- B. The same color real bodies
- C. The same high price
- D. The same low price
Answer: C
Explanation:
Detailed Explanation:
A Tweezers Top is defined by two or more candles with matching highs. The shape of the bodies matters less than the fact that they share the same high price, indicating a firm resistance level.
NEW QUESTION # 287
The Point & Figure pattern highlighted below is a:
- A. Triple top buy
- B. Ascending triple top buy
- C. Bullish catapult buy
- D. Spread triple top buy
Answer: D
Explanation:
Detailed Explanation:
A "Spread" triple top is a Triple Top pattern where the columns of Xs are separated by extra columns (wider than normal), indicating a longer duration of distribution/accumulation. The wide spacing defines it as a Spread Triple Top.
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NEW QUESTION # 288
A descending triangle that forms in a downtrend would probably be considered a:
- A. Continuation pattern
- B. Probably wouldn't be useful in forecasting the future direction of the trend173
- C. Reversal pattern
- D. Either A or B172
Answer: A
Explanation:
Detailed Explanation:175
A descending triangle is a bearish pattern (flat support, lower highs). If it forms during a downtre176nd, it aligns with the prevailing direction. Therefore, it acts as a continuation pattern, signaling that the downtrend is likely to resume after the breakdown.
NEW QUESTION # 289
Which is the weakest part of a trading system?
- A. The oscillators
- B. The system
- C. The trader
- D. Price patterns
Answer: C
Explanation:
Detailed Explanation:
The human element-the trader-is widely considered the weakest link due to psychological factors like fear, greed, lack of discipline, and the inability to stick to the system's rules during periods of drawdown or stress.1
NEW QUESTION # 290
Av32erage True Range (ATR) is an indicator that measures:
- A. Momentum
- B. Volatility
- C. Volume
- D. Breadth
Answer: B
Explanation:
Detailed Explanation:
Developed by J. Welles Wilder, ATR measures the degree of price movement (range) over a specific period.
It is a pure measure of volatility and does not indicate price direction.
NEW QUESTION # 291
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