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 #76

A trend based trading system where the trend is the slope of a straight line found using a least squares regression:

A. N-day breakout

B. Point and figure

C. Simple moving average

D. Linear regression slope

Discussion 0

Correct Answer: D Vote an answer

Question #77

Which of the following is the MOST likely use of an oscillator in a trading system:

A. To determine position sizes

B. As a timing tool

C. To hedge other positions

D. To forecast future price levels

Discussion 0

Correct Answer: B Vote an answer

Question #78

Which of the following is NOT true in chart interpretation:

A. The goal is to find consistent, reliable and logical patterns

B. A price chart is a representation of human behavior

C. Chart patterns can be caused by commonly used trading techniques

D. The behavioral aspects of prices are irrational

Discussion 0

Correct Answer: D Vote an answer

Question #79

What is the position of the MTA Code of Ethics as it pertains to trading on inside information?

A. Insider trading which violates the laws/regulations of any governmental or regulatory agency is prohibited

B. Under no circumstances is insider trading allowed

C. The Code of Ethics takes no position on insider trading

D. Inside information may be disseminated but not acted upon

Discussion 0

Correct Answer: A Vote an answer

Question #80

All of the following are similar technical indicators, EXCEPT:

A. The Sentix Index

B. Relative Strength Index

C. Williams %R

D. Stochastics

Discussion 0

Correct Answer: A Vote an answer

Question #81

Stocks with superior fundamentals will normally decouple and start outperforming on an relative basis during:

A. a rampant bull market.

B. a market correction (bear market).

C. the last legs of an uptrend.

D. a market consolidation.

Discussion 0

Correct Answer: B Vote an answer

Question #82

A Harami most closely resembles what "western" charting pattern?

A. Inside day

B. Gap

C. Outside day

D. Andrew's Pitchfork

Discussion 0

Correct Answer: A Vote an answer

Question #83

Speculative stocks put on their best performance in which of the following markets?

A. Both in the beginning and at the end of a bull market

B. Near the final stages of a bull market.

C. During the whole bull market

D. At the early stages of a bull market.

Discussion 0

Correct Answer: B Vote an answer

Question #84

Which of the following is a valid guideline 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. This analysis does not hold for options or mutual funds due to the unique characteristics of these securities

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

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

Discussion 0

Correct Answer: C Vote an answer

Question #85

Which of the following is true of the harami pattern?

A. All of the above

B. It is considered a continuation pattern

C. It is the opposite of the engulfing pattern

D. The color of the real body is of utmost importance to its significance

Discussion 0

Correct Answer: C Vote an answer

Question #86

Which of the following is a FALSE statement about MACD?

A. If MACD has had a positive value for more than 12 periods, this is predictive of a reversal.

B. It is most useful in a trending market

C. The calculation does not use any simple moving averages

D. The signal line is also a moving average

Discussion 0

Correct Answer: A Vote an answer

Question #87

________ is calculated by finding the probability of loss of the current market positions based on past market movements.

A. Potential Risk

B. Treynor ratio

C. Value at Risk

D. Hindenburg Omen

Discussion 0

Correct Answer: C Vote an answer

Question #88

How would one improve a trading system utilizing band penetrations as trading signals which is giving too many unprofitable trade signals?

A. Widen the bands

B. Narrow the bands

C. Utilize a shorter time horizon

D. Utilize stop loss orders

Discussion 0

Correct Answer: A Vote an answer

Question #89

Which of the following statement states the correct percentage of the percentage gain on a loss of 50 percent?

A. It requires a 90% gain to break even

B. It requires a 100% gain to break even

C. It requires an 80% gain to break even

D. It requires a 70% gain to break even

Discussion 0

Correct Answer: A Vote an answer

Question #90

Which of the following is not an example of initial decision taken into consideration in the field of system testing?

A. You need a Risk Management Plan

B. You need to configure the machine time horizon

C. Determine what markets to concentrate can be delayed initially

D. Set the time-routine

Discussion 0

Correct Answer: C Vote an answer

Download Free CMT Association CMT-Level-II Demo

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