100% Pass Top-selling CMT-Level-II Exams - New 2021 CMT Association Pratice Exam
CMT Program Dumps CMT-Level-II Exam for Full Questions - Exam Study Guide
NEW QUESTION 155
According to the MTA Code of Ethics, what prohibitions MUST be adhered to after making a buy or sell recommendation?
- A. Allow adequate time for clients to act on recommendations before the analyst acts on the recommendation
- B. Analysts may effect trades for their own account even if their employer has not had time to act on their recommendation
- C. Insider trading activity is the subject of SEC regulations, therefore the MTA Code of Ethics is silent on this issue
- D. Analysts must give clients and their employer adequate time to trade, but the analyst's family members are under no such restriction
Answer: A
NEW QUESTION 156
Which of the following BEST characterizes the Theory of Contrary Opinion?
- A. Fundamental analysis is always wrong
- B. Always trade against the prevailing trend
- C. The future can be extrapolated based on present trends
- D. When virtually everyone takes the position that the market is headed in a certain direction, there is no one left to push the trend any further
Answer: D
NEW QUESTION 157
Which of the following is NOT continuation pattern?
- A. Tweezers
- B. Windows
- C. Rising three methods
- D. Separating lines
Answer: A
NEW QUESTION 158
Which of the following is a CORRECT inter-market relationship
- A. Bonds prices trend in the same direction as commodities
- B. Bond prices move inversely to equities
- C. The U.S. dollar moves inversely to commodities
- D. Financial stocks trend inversely to bonds
Answer: C
NEW QUESTION 159
Which of the following statement is not true about the Diamond Top with regards to pattern analysis?
- A. It is a profitable pattern
- B. It occurs at the top of a very sharp upward rise in prices
- C. It is not rare at price bottoms
- D. It consists of a combination of a broadening pattern and a symmetrical triangle
Answer: C
NEW QUESTION 160
Which of the following is a CORRECT guideline in pyramiding trades positions?
- A. Take profits on winning positions
- B. Adjust protective stops to the breakeven point
- C. Add to losing positions, as a form of dollar cost averaging
- D. Each successive layer should be larger than the prior layer
Answer: B
NEW QUESTION 161
Intermarket analysis can be used for which investment decisions?
- A. All of the above
- B. Decisions among equity market sectors
- C. Decisions among mutual fund
- D. Decisions among asset classes
Answer: A
NEW QUESTION 162
Which of the following is the MOST likely use of an oscillator in a trading system:
- A. To forecast future price levels
- B. To hedge other positions
- C. To determine position sizes
- D. As a timing tool
Answer: D
NEW QUESTION 163
________ is calculated by finding the probability of loss of the current market positions based on past market movements.
- A. Value at Risk
- B. Treynor ratio
- C. Potential Risk
- D. Hindenburg Omen
Answer: A
NEW QUESTION 164
Which of the following is NOT true of the rising and falling three methods patterns?
- A. The final day is another long candle of the opposite color of the three preceding small candles
- B. They are continuation patterns
- C. The pattern consists of a single candle
- D. It starts with a long candle is followed by three short candles of the opposite color
Answer: C
NEW QUESTION 165
Which of the following MUST be adhered to in published or written analytical reports?
- A. All of the above
- B. Statements must be consistent with available evidence
- C. Statements may not indefensibly disparage the work of other analysts
- D. Statements must be consistent with the accumulated knowledge of technical analysis
Answer: A
NEW QUESTION 166
What is the proper use of long-term charts versus daily price charts?
- A. Long-term charts are more useful for making trading decisions
- B. Daily price charts allow for a thorough trend analysis
- C. Daily price charts allow for a better assessment of the price trend
- D. Long-term charts allow for a better assessment of the price trend
Answer: D
NEW QUESTION 167
How might one detrend data to determine if a cycle exists?
- A. Divide the current prices by a moving average of those prices
- B. Plot a linear regression line through the data midpoin
- C. Create an oscillator that plots a standard deviation of the period lows
- D. Apply volume weighting to both high and lows in the data
Answer: A
NEW QUESTION 168
An MTA Member or Affiliate using the MTA mailing list to send _____________ would not be in violation of the Code of Ethics:
- A. Research reports
- B. Charting discount coupons
- C. A free membership to a club
- D. CMT Newsletter
Answer: D
NEW QUESTION 169
The MACD Histogram is a/an:
- A. oscillator
- B. trend-following indicator .
- C. momentum indicator.
- D. breadth indicator.
Answer: A
NEW QUESTION 170
Most of these indicators measure what uninformed investors are doing.
- A. Sentiment indicators
- B. Flow of Funds indicators
- C. Breadth indicators
- D. Cycle indicators
Answer: A
NEW QUESTION 171
Which of the following would be a valid trading interpretation of head and shoulder chart patterns?
- A. Sell when the right shoulder penetrates the neckline
- B. Buy on the first rally after the neckline is penetrated
- C. Buy when the right part of the head is forming
- D. Buy when the head forms a higher high
Answer: A
NEW QUESTION 172
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