CMT Association CMT Level II - CMT-Level-II Exam Questions [2026]

QUESTION NO: 1
Which of the following factors would increase the predictive power of the evening star pattern?

A. If there is no overlap among the real bodies of the candles in the pattern B. All of the above C. If the last candle closes deeply into the body of the first candle D. If there is light volume on the first candle of the pattern and heavy volume on the last candle of the pattern

Correct Answer: B

QUESTION NO: 2
What is the proper use of long-term charts versus daily price charts?

A. Daily price charts allow for a thorough trend analysis B. Long-term charts are more useful for making trading decisions C. Long-term charts allow for a better assessment of the price trend D. Daily price charts allow for a better assessment of the price trend

Correct Answer: C

QUESTION NO: 3
What is the general term for rate-of-change momentum indicators:

A. Oscillators B. Stochastic C. MACD D. RSI

Correct Answer: A

QUESTION NO: 4
What is the specific name given to the normal distribution for having special characteristics?

A. Center limit theorem B. Histogram C. Central limit theorem D. All of the above statements

Correct Answer: C

QUESTION NO: 5
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. Linear regression slope C. Simple moving average D. Point and figure

Correct Answer: B

QUESTION NO: 6
Abandoned baby patterns:

A. appear nowhere in star patterns, only in box ranges B. appear upon completion of star patterns C. ideally has a doji as second real bottom D. can only be formed over long periods of time

Correct Answer: C

QUESTION NO: 7
The MACD Histogram is a/an:

A. momentum indicator. B. trend-following indicator . C. oscillator D. breadth indicator.

Correct Answer: C

QUESTION NO: 8
Which of the following instances marks a single best valid buy signal with respect to the direction system for the next new trend?

A. D B. B C. C D. A

Correct Answer: A

QUESTION NO: 9
Which of the following is one of the disadvantages of computerized trading systems?

A. Most computerized systems are unprofitable in non-trending markets B. Profit trades are exited too early C. Computerized systems miss many market trends D. Trading decisions are less consistent

Correct Answer: A

QUESTION NO: 10
Which of the following is the best combination which results in respect to the volume and pullback in Diamond Top pattern?

A. The best combination is when a downward breakout happens on an under-average amount of breakout with no pullback B. The best mix is when there is a downward breakout on less than normal breakout rate and with few pullbacks C. The best combination is when there is an upward breakout on less than normal breakout volume with no pullback D. The best combination is when there is a downward breakout at an above-average breakout rate with few pullbacks

Correct Answer: A

QUESTION NO: 11
Which of the following is an important point in interpreting chart patterns?

A. Chart patterns should be interpreted separately from trendline analysis B. Topping patterns usually have smaller price ranges and take longer to build C. Longer-term patterns are more valid than shorter patterns D. Chart pattern interpretation is based solely on the current pattern and ignores the prior trend

Correct Answer: C

QUESTION NO: 12
Which of the following is the reason behind choosing a logarithmic scale? Select the best possible answer.

A. When long periods of trading activity are plotted B. When long or short periods of trading activity are plotted C. When short periods of trading activity are plotted D. When intervals of trading activity are plotted over a limited span

Correct Answer: A