CMT-Level-II

A technical analyst was at a convention in which a long-term point and figure stock chart was being discussed. He noticed that low-price action did not appear as active as high-price action on the chart. One suggestion the technical analyst could provide, to clear up this apparent distortion, would be...

Which is NOT true of the three advancing white soldiers' pattern?A . It is a gradual and steady riseB . Each real body opens within or near the prior session's real bodyC . It is composed of three white candles with successively higher closesD . Each candle should have a...

Which of the following is an important point in interpreting chart patterns?A . Chart pattern interpretation is based solely on the current pattern and ignores the prior trendB . Chart patterns should be interpreted separately from trendline analysisC . Longer-term patterns are more valid than shorter patternsD . Topping patterns...

A trend-based trading system where the trend is the average of a pre-determined number of previous days' (n) closing prices is:A . Point and figureB . Simple moving averageC . Linear regression slopeD . N-day breakoutView AnswerAnswer: B

Which of the following is a true statement according to Elliott Wave Theory?A . Wave four should not overlap wave oneB . The theory is composed of time, ratios and wave forms, in that order of importanceC . The theory was originally applied to individual stocks and does not work...

Which of the following is NOT true of the belt hold candle?A . The pattern consists of a single candleB . The bearish belt-hold is a long black candle that opens on the high and moves lower through the trading sessionC . A short belt-hold line has more significance than...

What is the position of the MTA Code of Ethics as it pertains to trading on inside information?A . Under no circumstances is insider trading allowedB . The Code of Ethics takes no position on insider tradingC . Insider trading which violates the laws/regulations of any governmental or regulatory agency...

What steps must analysts take in introducing new methods of technical analysis under the MTA Code of Ethics?A . All new techniques must be fully documented even if proprietary methods must be disclosed to do soB . New procedures must be documented as to procedure and rationaleC . New procedures...

Near the end of a recession:A . bonds turn up before stocks and commodities.B . stocks turn up before bonds and commodities.C . commodities turn up before bonds and stocks.D . all the asset classes turn up simultaneously.View AnswerAnswer: A

_____________ captures an increasing part of the profits as price moves in a favorable direction.A . Initial StopB . Trailing stopC . Sell stopD . Standard deviation stopView AnswerAnswer: B