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Free CMT Association CMT-Level-II Practice Exam with Questions & Answers

Questions 1

When analyzing macro trends, which of the following indicators can provide an insight into the intensity of bullish or bearish camps?

Options:
A.

On-balance volume

B.

Accumulation/Distribution

C.

New High/New Low index

D.

Slope of the 200 day moving average

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Questions 2

Which of the following is true of the separating lines pattern?

Options:
A.

The top of the upper shadow of one candle is at the same price as the bottom of the lower shadow of the other candle

B.

The opening price of the second candle equals the opening price of the first candle

C.

The two candles have the same color

D.

It is a reversal pattern

Questions 3

The stochastic oscillator was created utilizing which basic observation?

Options:
A.

As prices decline, the trading range tends to narrow

B.

Changes in volume precedes price movements

C.

Existing oscillators were limited to a range of 0 to 100

D.

As prices increase, prices tend to be closer to the upper end of the trading range

Questions 4

Why is it important to ignore opinions and focus on facts in market analysis?

Options:
A.

Opinions are not generally discounted by the market

B.

Stock market news is more important than general news in determining the future direction of the markets

C.

Unexpected news does not get factored into the market

D.

General news reflects slowly unfolding economic and financial trends not yet discounted by the markets

Questions 5

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?

Options:
A.

Implying that he can guarantee a return.

B.

Stating his past performance as long as it is fact.

C.

Imputing his past performance to future performance.

D.

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

Questions 6

Which of the following is a continuation pattern?

Options:
A.

Umbrella

B.

Hammer

C.

Doji

D.

Windows

Questions 7

In a point and figure chart, what are the typical box sizes for a stock trading between 20 and 100, between 100 and 200, and then above 200?

Options:
A.

1, 2, 3

B.

1, 2, 4

C.

½, 1, 2

D.

1, 3, 5

Questions 8

Near the end of a recession:

Options:
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.

Questions 9

Which of the following is the CORRECT order of the Industrial Life Cycle?

Options:
A.

Innovation, Maturity, Consolidation and Decay

B.

Innovation, Consolidation, Decay and Maturity

C.

Innovation, Consolidation, Maturity and Decay

D.

Innovation, Maturity, Decay and Consolidation

Questions 10

Which of the following is true of contrary opinion as a technical analysis technique?

Options:
A.

Contrary opinion can be used as the sole decision source in entering into new trading positions

B.

Contrarians trade against the consensus even when it is within a normal range

C.

Contrary opinion is more useful in deciding when to exit positions than as a timing tool

D.

Once all long positions have been set, there is diminishing influence by the bulls

Exam Code: CMT-Level-II
Certification Provider: CMT Association
Exam Name: CMT Level II Exam
Last Update: Jul 12, 2025
Questions: 262

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