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

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

Exam Questions: 264
Updated On: Jul 15, 2026

Question #61

Which of the following point and figure trading techniques limits risk compared to more basic trading rules?

A. Close out your trade on the second reversal back in the direction of the original signal

B. Take small consistent profits, but allow large, windfall profitable positions to run

C. Buy or sell on pullbacks after initial trade signal

D. Buy or sell as soon as a new column is created on the chart

Discussion 0

Correct Answer: C Vote an answer

Question #62

Which of the following is NOT a valid volume interpretation technique?

A. Construct volume moving averages

B. Remove low volume periods

C. Remove volume associated with large price moves

D. Utilize statistical techniques to predict prices based on volume

Discussion 0

Correct Answer: C Vote an answer

Question #63

From a contrarian's perspective, which of the following would be considered a bullish indicator?

A. CNBC is on the television at the local bar, and everyone is paying attention

B. A Business Week cover with a story on "The Death of Equities"

C. The vast majority of professional financial letter writers are bullish

D. Sales of investment books are increasingly dramatically

Discussion 0

Correct Answer: B Vote an answer

Question #64

Which of the following is considered a continuation pattern?

A. Triangle

B. Double top

C. Inverse head and shoulders

D. Head and shoulders

Discussion 0

Correct Answer: A Vote an answer

Question #65

Which of the following is a CORRECT interpretation of volume?

A. Volume precedes price

B. In an uptrend, volume should increase on down days

C. In a downtrend, volume should increase on up days

D. Price precedes volume

Discussion 0

Correct Answer: A Vote an answer

Question #66

Based on the chart below, interpret the on balance volume (OBV) indicator with respect to price action:

A. Positive divergence between price and indicator suggest uptrend is weak and near reversal.

B. Prices are consolidating but OBV direction has turned higher which indicates accumulation by long term traders.

C. Negative divergence between price and indicator suggest distribution is taking place at top.

D. Prices are higher but OBV is sideways which can't be interpreted.

Discussion 0

Correct Answer: C Vote an answer

Question #67

Adam Green, a portfolio manager, is making a presentation to a prospective client. Green says that as a new portfolio manager, he made an average annual rate of return of 40% in the last two years at his previous firm and that based on this, he can guarantee a 40% return to the client. Which of the following statements is in accordance with Standard III(D), Performance Presentation?

A. Implying that he can guarantee a return based on just 2 years of performance.

B. Stating his past performance as long as it is fact.

C. Implying that he can guarantee a return.

D. Imputing his past performance to future performance.

Discussion 0

Correct Answer: B Vote an answer

Question #68

Staying the course in a trading strategy GENERALLY entails?

A. Most valid buy signals in trading systems occur in the opposite direction of the prevailing trend

B. Meeting margin calls

C. Not getting sidetracked by single, counter-trend news events

D. Not utilizing stops

Discussion 0

Correct Answer: C Vote an answer

Question #69

Which of the following MUST be adhered to in published or written analytical reports?

A. Statements may not indefensibly disparage the work of other analysts

B. All of the above

C. Statements must be consistent with available evidence

D. Statements must be consistent with the accumulated knowledge of technical analysis

Discussion 0

Correct Answer: B Vote an answer

Question #70

A trend-based trading system where the trend is the average of a pre-determined number of previous days' (n) closing prices is:

A. N-day breakout

B. Point and figure

C. Simple moving average

D. Linear regression slope

Discussion 0

Correct Answer: C Vote an answer

Question #71

According to Kirkpatrick and Dahlquist, during emotional times, flow of funds signals:

A. Function no differently than at any other time in the market cycle because of shortcomings in the measurement procedures.

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. Suggests the duration of the next downleg in the market cycle

Discussion 0

Correct Answer: B Vote an answer

Question #72

Which of the following conditions is an absolute must for a true divergence based on the MACD histogram?

A. The MACD histogram has to record atleast a 200 bar low/high on the first trough/peak

B. Price action extended above/below the 26 week moving average

C. Breaking of the centerline

D. Confirmation from the MACD fast line and signal line

Discussion 0

Correct Answer: C Vote an answer

Question #73

Which of the following is MOST often a reversal pattern:

A. Triangle

B. Pennant

C. Head and shoulders

D. Wedge

Discussion 0

Correct Answer: C Vote an answer

Question #74

Which of the following is an INCORRECT definition of cycle terminology?

A. Frequency - the number of cycles that repeat every 360°

B. Phase - a measure of separation between the top and bottom of a wave (cycle)

C. Amplitude - the height of the wave (cycle)

D. Period - the time needed to finish one wave (cycle)

Discussion 0

Correct Answer: B Vote an answer

Question #75

According to Charles Dow, what has been the main downfall of Wall Street investors?

A. Independent thinking

B. Failure to abide by classic trading rules

C. Failure to stay the course

D. Pride of opinion

Discussion 0

Correct Answer: D Vote an answer

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