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 #16

Which of the following is true of Wilder's Parabolic System?

A. It is a time/price reversal system

B. All of the above

C. It always in the market

D. It only works for trending markets

Discussion 0

Correct Answer: B Vote an answer

Question #17

Which of the following is most likely to occur when the overall market is deeply oversold and on the verge of reversing?

A. Relative strength of lagging groups begins to improve

B. Leading groups make new lows and accelerate to the downside

C. Lagging groups fail to confirm new lows

D. Leading groups fail to confirm new lows

Discussion 0

Correct Answer: D Vote an answer

Question #18

Central tendency is:

A. A popular Elliott Wave guideline

B. The midpoint of a trading range

C. A common pitfall of novice traders

D. Statistical jargon for the typical outcome

Discussion 0

Correct Answer: D Vote an answer

Question #19

Tick volume refers to:

A. the number of contracts traded at each price tick.

B. the number of recorded price changes during a particular time interval.

C. the change in open interest during a particular time interval.

D. the number of contracts traded at each time interval.

Discussion 0

Correct Answer: B Vote an answer

Question #20

Which of the following BEST describes equity market performance during the presidential election cycle:

A. 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

B. 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

C. 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

D. 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

Discussion 0

Correct Answer: B Vote an answer

Question #21

What of the following could be utilized in a computerized trading system to improve the performance of Wilder's Parabolic System?

A. Directional movement index

B. Trend lines

C. Average divergence index

D. Stops

Discussion 0

Correct Answer: A Vote an answer

Question #22

Which of the following is not a method used by Technical analysts to determine trading systems?

A. Pattern recognition,

B. Trend following

C. Non-exogenous signal systems

D. Countertrend

Discussion 0

Correct Answer: C Vote an answer

Question #23

Which of the following the correct description of the law of percentages in the field of decision making and selection?

A. A relative gain of 20% can be made back with a relative loss of 20%, but an absolute 20% loss requires a 25% gain to break even

B. A relative loss of 20% can be made back with a relative gain of 20%, but an absolute 10% loss requires a 25% gain to break even

C. A relative loss of 20% can be made back with a relative gain of 20%, but an absolute 20% loss requires a 25% gain to break even

D. A relative loss of 20% can be made back with a relative gain of 20%, but an absolute 20% loss don't require a 25% gain to break even

Discussion 0

Correct Answer: C Vote an answer

Question #24

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. These stories uncover the true underlying drivers of the market

C. Such stories are essentially gossip

D. Price movements are not news

Discussion 0

Correct Answer: C Vote an answer

Question #25

What is the bearish counterpart to the Piercing Line candlestick pattern?

A. Dark Cloud Cover

B. Hanging Man

C. 3 Black Crows

D. Shooting Star followed by an Inverted Hammer

Discussion 0

Correct Answer: A Vote an answer

Question #26

Which of the following is a proper technical usage of MACD indicators?

A. Trendline analysis can be used with MACD

B. MACD histograms are best used to initiate new positions contrary to the price trend

C. MACD crossover rules are different than other crossover rules

D. When the slower MACD line is above the faster line, the MACD histogram will be above zero

Discussion 0

Correct Answer: A Vote an answer

Question #27

Which of the following are valid interpretations of the put-call ratio?

A. All of the above

B. It is used as a contrary indicator

C. It is the major sentiment index used for options trading

D. Extreme levels are trading signals

Discussion 0

Correct Answer: A Vote an answer

Question #28

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

Discussion 0

Correct Answer: D Vote an answer

Question #29

Can stock prices be normally distributed and are stock returns normally distributed?

A. No, you can not have negative prices and every number is possible with any normal distribution. No, stock returns are normally distributed

B. Yes, you can not afford negative prices and with any usual distribution, any number is possible. No, stock returns are normally distributed

C. Yes, you can not afford negative prices and with any usual distribution, any number is possible. Yes, stock returns are normally distributed

D. No, you can not have negative prices and every number is possible with any normal distribution. Yes, stock returns are normally distributed

Discussion 0

Correct Answer: D Vote an answer

Question #30

Which of the following places the cycles in time length order?

A. Alpha/beta, lunar, seasonal, presidential and Kondratieff

B. Lunar, presidential, seasonal, alpha/beta and Kondratieff

C. Kondratieff, presidential, alpha/beta, seasonal and lunar

D. Alpha/beta, presidential, seasonal, lunar, and Kondratieff

Discussion 0

Correct Answer: A Vote an answer

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