Free CMT Association CMT-Level-II Practice Exam with Questions & Answers | Set: 2

It is a bullish reversal pattern

The greater the penetration into the price levels of the prior day's real body, the greater predictive power

It is the opposite of the dark cloud cover

It is preceded by a market uptrend

All new techniques must be fully documented even if proprietary methods must be disclosed to do so

New procedures must be documented as to procedure and rationale

New procedures must be supported by adequate back testing confirmed by at least technician

New methods need not be consistent with the accumulated knowledge of the field of technical analysis

Under no circumstances is insider trading allowed

The Code of Ethics takes no position on insider trading

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

Inside information may be disseminated but not acted upon

An analyst cannot use nonmaterial nonpublic information.

An analyst may use material nonpublic information as long as it is for his personal use.

An analyst may use material nonpublic information if it is legal in his country to do so.

An analyst may use nonmaterial nonpublic information as long as it has been developed under the Mosaic Theory.

Two-thirds of the outcomes will lie above within one standard deviation of the mean

95% of the outcomes will lie within two standard deviations from the mean

Two-thirds of the outcomes will lie below within two standard deviations of the mean.

Two-thirds of the outcomes will lie either above or below within one standard deviation of the mean

10-day

12-day

19-day

28-day

Linear relationship, as the Best Fit line is curvilinear.

Linear relationship, as points fall generally along a straight line.

Non-linear relationship, as points fall generally along a straight line.

Non-linear relationship, as the Best Fit line is curvilinear.

The best combination is when there is an upward breakout on less than normal breakout volume with no pullback

The best mix is when there is a downward breakout on less than normal breakout rate and with few pullbacks

The best combination is when a downward breakout happens on an under-average amount of breakout with no pullback

The best combination is when there is a downward breakout at an above-average breakout rate with few pullbacks

Only knowledge of current clients and employers must be kept in confidence

The MTA Code of Ethics does not apply to confidentiality of unlawful client or employer activity

The MTA Code of Ethics is silent on client and employer confidentiality so members must refer to laws/rules promulgated by regulatory authorities

All information pertaining to any lawful activity of past or present clients or employers must be kept in confidence

Distance between troughs

Distance between peaks

Useful in checking where the trend direction is headed or if it is changing

To the left when the peak is beyond the halfway point