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Free CMT Association CMT-Level-II Practice Exam with Questions & Answers | Set: 6

Questions 51

Which of the following is NOT a valid technical method for determining price targets?

Options:
A.

Discounted value of expected future cash flows

B.

Height of the head in a head and shoulders pattern

C.

Channel width

D.

Measure of triangle base from breakout

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Questions 52

Which of the following figures can not be plotted on a point and figure chart when we have to plot months and years together? Choose the best possible answer.

Options:
A.

The year is displayed at the bottom of the column and the month is not plotted

B.

The year is displayed at the bottom of the column and the number of the month is plotted instead of the X or O

C.

The month is displayed at the bottom of the column and the year is not plotted

D.

The month is displayed at the bottom of the column and the number of the year is plotted instead of the X or O

Questions 53

Which of the following is considered a reversal pattern in candlestick charting?

Options:
A.

Windows

B.

Rising three methods

C.

Hanging man

D.

Falling three methods

Questions 54

According to Kirkpatrick and Dahlquist, during emotional times, flow of funds signals:

Options:
A.

Appear to work poorly because price seems to divorce itself from economics.

B.

Appear to work exceptionally well because of the market's flight to safety.

C.

Function no differently than at any other time in the market cycle because of shortcomings in the measurement procedures.

D.

Suggests the duration of the next downleg in the market cycle

Questions 55

Which is NOT true of the three advancing white soldiers' pattern?

Options:
A.

It is a gradual and steady rise

B.

Each real body opens within or near the prior session's real body

C.

It is composed of three white candles with successively higher closes

D.

Each candle should have a long upper shadow

Questions 56

Which of the following is true for the use of the chi square test?

Options:
A.

Used as the main confirmation test in Dow Theory

B.

Compares risk to expected returns

C.

Compares actual returns to expected returns

D.

Signals moving average crossovers

Questions 57

Paul Jones is a chemical industry research analyst for a large brokerage company. That industry is currently seeing an increase in mergers and acquisitions. While flying through Chicago, Jones sees several senior

officers who she knows are from the largest and fourth largest chemical companies walk into a conference room. She concludes that negotiations for an acquisition might be taking place. Jones:

Options:
A.

may not act or cause others to act on this information.

B.

may not act but advise others to act on this information.

C.

may use this information to support an investment recommendation.

D.

should inform her compliance officer that she has material nonpublic information on firms she covers.

Questions 58

Which of the following is the calculation for price objective using the horizontal count method?

(Note: X is the multiplication symbol in this question)

Options:
A.

Price level of the lowest box (for up counts) + (number of boxes in the reversal columns X reversal size)

B.

Price level of the lowest box (for up counts) X number of boxes in the reversal columns X reversal size

C.

Price level of the lowest box (for up counts) of the base X number of columns of the base X reversal size

D.

Price level of the lowest box (for up counts) of the base + (number of columns of the base X reversal size)

Questions 59

Which of the following is NOT a momentum indicator:

Options:
A.

Relative strength

B.

Difference between price and moving average

C.

Difference between two moving averages

D.

Trident index

Questions 60

Staying the course in a trading strategy GENERALLY entails?

Options:
A.

Meeting margin calls

B.

Not utilizing stops

C.

Not getting sidetracked by single, counter-trend news events

D.

Most valid buy signals in trading systems occur in the opposite direction of the prevailing trend

Exam Code: CMT-Level-II
Certification Provider: CMT Association
Exam Name: CMT Level II Exam
Last Update: Jul 17, 2025
Questions: 262

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