CMT-Level-II Exam Brain Dumps - Study Notes and Theory [Nov-2021]
100% Guaranteed Results CMT-Level-II Unlimited 264 Questions
NEW QUESTION 138
Which market tends to have the GREATEST amount of volatility?
- A. Currencies
- B. Eurodollars
- C. Bonds
- D. Equities
Answer: D
NEW QUESTION 139
Which of the following is true of the three black crows' pattern?
- A. When succes
- B. The three candles do not have to be on consecutive trading periods
- C. The color of the real bodies is of utmost importance to its significance
- D. It is continuation pattern
Answer: C
NEW QUESTION 140
Which of the following methods is not used to portray the volume of trade?
- A. Point-and-Figure
- B. Bar/candle
- C. Leaf and stem
- D. Equivolume
Answer: C
NEW QUESTION 141
Which of the following is true of moving averages?
- A. Moving averages provide the most valid trade signals in sideways markets
- B. Moving averages always provide more valid trade signals than oscillators
- C. Moving averages provide the most valid trade signals in trending markets
- D. Oscillators always provide more valid trade signals than moving averages
Answer: C
NEW QUESTION 142
Which of the following is an INCORRECT statement regarding the inverted hammer pattern?
- A. The color of the real body is of utmost importance to its significance
- B. It comes at the end of a market downtrend
- C. It is a bottom reversal signa
- D. It has the same form as the shooting star pattern
Answer: A
NEW QUESTION 143
According to the raw performance statistics which of the following statements predicts the correct when the performance of a broadening pattern at its best and its failure rate?
- A. At best, the performance of an expanding pattern is average, and its rate of failure is above average
- B. At best, the performance of an expanding pattern is average, and its rate of failure is below average
- C. At best, the performance of an expanding pattern is below average, and its rate of failure is above average
- D. At best, the performance of an expanding pattern is above average, and its rate of failure is above average
Answer: A
NEW QUESTION 144
From a contrarian's perspective, which of the following would be considered a bullish indicator?
- A. A Business Week cover with a story on "The Death of Equities"
- B. CNBC is on the television at the local bar, and everyone is paying attention
- C. Sales of investment books are increasingly dramatically
- D. The vast majority of professional financial letter writers are bullish
Answer: A
NEW QUESTION 145
Which of the following statement states the correct percentage of the percentage gain on a loss of 50 percent?
- A. It requires a 90% gain to break even
- B. It requires an 80% gain to break even
- C. It requires a 100% gain to break even
- D. It requires a 70% gain to break even
Answer: A
NEW QUESTION 146
What is the reason behind time being an important aspect of point-and-figure chart analysis?
- A. To improve the efficiency of the system
- B. To reduce errors in a system
- C. All of the above statements
- D. To see how long a pattern takes to form
Answer: D
NEW QUESTION 147
Which of the following is a true statement according to Elliott Wave Theory?
- A. The rule of alternation states that up waves follow down waves
- B. The number of waves follows the Pythagorean theorem
- C. Ratios are used to define price objectives
- D. Bear markets do not fall below the top of the prior fourth wave
Answer: C
NEW QUESTION 148
Which of the following would provide the least help to a trader who is trying to determine where to place a stop order?
- A. Pivot Point Technique
- B. ATR
- C. TRIN
- D. Parabolic SAR
Answer: C
NEW QUESTION 149
Which of the following is a TRUE statement about the Stochastic Oscillator?
- A. It works best in a trending market, when it confirms the direction of the primary trend.
- B. It is not as sensitive to recent price action as other indicators like Rate of Change
- C. It examines the most recent closing price as a percentage of the price range over a window of time
- D. It moves in the same direction as the Williams %R indicator
Answer: C
NEW QUESTION 150
Which of the following is true of the harami pattern?
- A. All of the above
- B. The color of the real body is of utmost importance to its significance
- C. It is the opposite of the engulfing pattern
- D. It is considered a continuation pattern
Answer: C
NEW QUESTION 151
What of the following could be utilized in a computerized trading system to improve the performance of Wilder's Parabolic System?
- A. Stops
- B. Average divergence index
- C. Directional movement index
- D. Trend lines
Answer: C
NEW QUESTION 152
Using the Point-and-Figure method what is the standard method used to portray the volume on the chart?
- A. This is to divide up the volume occurring by each box was in operation
- B. This is to multiply the volume occurring when each box was in operation
- C. It is, to sum up, the volume that occurs when every box is not in use
- D. This is to sum up the volume occurring when each box was in operation
Answer: D
NEW QUESTION 153
Which of the following is most likely to occur when the overall market is deeply oversold and on the verge of reversing?
- A. Lagging groups fail to confirm new lows
- B. Leading groups fail to confirm new lows
- C. Relative strength of lagging groups begins to improve
- D. Leading groups make new lows and accelerate to the downside
Answer: B
NEW QUESTION 154
A technical analyst was at a convention in which a long-term point and figure stock chart was being discusseD. He noticed that low-price action did not appear as active as high-price action on the chart. One suggestion the technical analyst could provide, to clear up this apparent distortion, would be to:
- A. Increase the time frame on the chart
- B. Add the daily opening prices to provide a more visual benchmark of price changes
- C. Change the scale to arithmetic
- D. Change the charting scale to logarithmic
Answer: D
NEW QUESTION 155
A trend based trading system where signals occur when the current price reaches a new high or low:
- A. N-day breakout
- B. Simple moving average
- C. Swing breakout
- D. Point and figure
Answer: C
NEW QUESTION 156
Which of the following is not a disadvantage of the patterns that are formed by Broadening formations?
- A. They are relatively common in occurrence
- B. The breakout lines are moving permanently away from each other
- C. They are often difficult to identify
- D. They are hard to make the most of the profit
Answer: A
NEW QUESTION 157
___________ is used for comparing the long-term performance of one system against another.
- A. Beta
- B. Calmar ratio
- C. Sharpe Ratio
- D. Treynor Ratio
Answer: B
NEW QUESTION 158
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?
- A. Imputing his past performance to future performance.
- B. Stating his past performance as long as it is fact.
- C. Implying that he can guarantee a return based on just 2 years of performance.
- D. Implying that he can guarantee a return.
Answer: B
NEW QUESTION 159
_______moving average uses reverse linear weights:
- A. The weighted
- B. The exponential
- C. The simple
- D. The pivot-point
Answer: D
NEW QUESTION 160
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