CMT Association CMT-Level-I Actual Free Exam Questions & Community Discussion

Exam Code/Number: CMT-Level-I
Exam Name/Title: CMT Level 1 Exam
Certification Provider: CMT Association
Corresponding Certification: CMT Program

Exam Questions: 409
Updated On: Jul 17, 2026

Question #29

An inverse head and shoulders pattern is:

A. Generally unreliable1920

B. A topping pattern

C. A reversal pattern2122

D. A and B2324

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #30

To increase the sensitivity of a 5 x 3 point & figure chart, one could:

A. None of the above would increase the sensitivity of a point and figure chart

B. Increase the number of boxes needed for a reversal

C. Increase the box size

D. Decrease the box size

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #31

A candlestick that has a long upper shadow emerging after an extended uptrend suggests that:

A. Both buyers and sellers have lost momentum

B. Buyers have lost momentum

C. Lack of decisive control by either buyers or sellers

D. Sellers have lost momentum

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #32

Detrended time series:

A. Shows a distinct direction of movement

B. Tends to remain range bound

C. Shows distinct patterns like head and shoulder

D. Is never flat

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #33

An effective way of detrending price data to identify cycles is to:

A. Divide the closing prices by a moving average of those prices

B. Use a moving average of the highs/lows over n periods

C. Plot a linear regression (best-fit) line through the data midpoint

D. Use an oscillator and identify extreme levels

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #34

According to Efficient Market Hypothesis (EMH), which of the following statements is WRONG?

A. Markets discount everything very fast

B. Previous resistance is not easy to break

C. There are no definite support or resistance levels

D. There is no meaning to words like the market is oversold

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #35

In trend-based trading systems, what is the major determinant of trading activity (i.e., how often buy or sell signals are generated)?

A. Selection of trend speed

B. Volatility

C. Use of a scaling factor

D. Smoothing technique used

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #36

_______ is a sideways, three-wave corrective pattern.

A. Triangle

B. Flat

C. Zigzag

D. Ending diagonal

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #37

Which of the following statement is correct regarding the McClellan Oscillator?

A. It is a breadth momentum oscillator

B. It is used for longer-range trading compared to the McClellan Summation Index

C. It is the sum of two exponential moving averages

D. It measures the volume of advancing stocks

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #38

In relation to the principles of technical analysis, the phrase "patterns are fractal" refers to the assumption that:

A. Mandelbrot originated the concept of chart patterns

B. Patterns tend to break existing trends

C. Chart patterns found in an intraday chart can generate signals in a daily chart

D. Pattern analysis is universal and independent of time

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #39

What happens when the bid-ask spread becomes zero?

A. Execution of a sell order

B. Execution of a buy order

C. A tick appears on the chart

D. Any one of the above takes place

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #40

Which of the following is a valid approach in using technical analysis to make investment decisions among stock market sectors?

A. Charting tools such as trendlines and moving averages should not be employed with relative strength lines

B. Relative strength analysis allows for identification of the strongest and weakest sectors

C. Sectors whose relative strength lines are just turning up after a downtrend should be sold

D. Sector rotation is random

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #41

Flow of fund analysis relies in part:

A. On market volume statistics

B. On the sentiment of investment advisory services

C. On measuring the cash position of different investor groups

D. On monthly price movements of the Dow Jones Industrial Average

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #42

Volume divergences occur when:

A. Volume expands while the daily trading range contracts

B. Volume declines during a sideways congestion pattern

C. Volume expands while open interest contracts

D. A new high in an uptrend takes place on declining volume

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Download Free CMT Association CMT-Level-I Demo

Simply submit your e-mail address below to get started with our free demo of your CMT Association CMT-Level-I exam.