Weekend Sale 65% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: sale65best

Free CMT Association CMT-Level-II Practice Exam with Questions & Answers | Set: 7

Questions 61

In trend-based trading systems, what is the major determinant of trading activity (i.e., how often buy or sell signals are generated)?

Options:
A.

Smoothing technique used

B.

Distance between bands

C.

Selection of trend speed

D.

Use of a scaling factor

CMT Association CMT-Level-II Premium Access
Questions 62

Central tendency is:

Options:
A.

Statistical jargon for the typical outcome

B.

The midpoint of a trading range

C.

A popular Elliott Wave guideline

D.

A common pitfall of novice traders

Questions 63

Which of the following is a FALSE statement about MACD?

Options:
A.

The signal line is also a moving average

B.

It is most useful in a trending market

C.

The calculation does not use any simple moving averages

D.

If MACD has had a positive value for more than 12 periods, this is predictive of a reversal.

Questions 64

The "Rising 3 Methods" candlestick pattern is:

I. Bullish

II. Bearish

III. Long White Body followed by a series of smaller falling candles

IV. Long Black Body followed by a series of smaller rising candles

Options:
A.

I & III

B.

I & IV

C.

II & III

D.

II & IV

Questions 65

Which of the following is a CORRECT guideline in pyramiding trades positions?

Options:
A.

Each successive layer should be larger than the prior layer

B.

Take profits on winning positions

C.

Add to losing positions, as a form of dollar cost averaging

D.

Adjust protective stops to the breakeven point

Questions 66

Which of the following is a CORRECT interpretation of volume?

Options:
A.

In an uptrend, volume should increase on down days

B.

In a downtrend, volume should increase on up days

C.

Price precedes volume

D.

Volume precedes price

Questions 67

_____________ captures an increasing part of the profits as price moves in a favorable direction.

Options:
A.

Initial Stop

B.

Trailing stop

C.

Sell stop

D.

Standard deviation stop

Questions 68

If the upper breakout level is getting higher and higher along the upper trend line which of the following statement is not predicted correctly about this trend?

Options:
A.

It using up much of any potential gain after a breakout

B.

It is also moving farther from any realistic protective stop level

C.

It is increasing the risk

D.

It using up much of any potential gain just before a breakout

Questions 69

This indicator measures the distance between two exponential moving averages of advances minus declines.

Options:
A.

TRIN

B.

McClellan Oscillator

C.

Ayres-Hughes Breadth Indicator

D.

The SENTIX Index

Questions 70

Which is NOT a measure of central tendency:

Options:
A.

Mean

B.

Median

C.

Mode

D.

Variance

Exam Code: CMT-Level-II
Certification Provider: CMT Association
Exam Name: CMT Level II Exam
Last Update: Jul 13, 2025
Questions: 262

CMT Association Related Exams

CMT Association Free Access
Get CMT Association Full Access

CMT Association Free Exams
CMT Association Free Exams
Prepare effectively for CMT Association certification exams with free study resources and practice tests from Examstrack.