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[General] CMT Association CMT-Level-I Exam Questions in exam preparation

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【General】 CMT Association CMT-Level-I Exam Questions in exam preparation

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CMT Association CMT Level 1 Exam Sample Questions (Q183-Q188):NEW QUESTION # 183
Which of the following candlestick formations is a continuation pattern?
  • A. Tweezers
  • B. Hammer
  • C. Windows
  • D. Doji
Answer: C
Explanation:
Detailed Explanation:
A Window (the Japanese term for a Gap) is the major continuation pattern in candlestick analysis. The market is expected to "Go with the Window."

NEW QUESTION # 184
Three things should never be neglected in the market. Which one of the below four DOES N30OT fit in this list?
  • A. Federal Reserve
  • B. Advice from market experts
  • C. Ticker Tape
  • D. Crowd at the extremes
Answer: B
Explanation:
Detailed Explanation:
In technical analysis philosophy (especially "The Art of Contrary Thinking" and Marty Zweig's rules), one should watch the price action (Ticker), liquidity/monetary policy (Fed), and sentiment (Crowd at extremes).
Advice from market experts is often considered noise or a lagging consensus that should be treated with skepticism (or used as a contrarian indicator).

NEW QUESTION # 185
Enrique Perrago, CMT, is an analyst for a large investment management firm. Perrago issued a research report with an initial buy recommendation on Graham Airlines. The report includes an analysis using some very new and controversial methods of technical analysis, along with complete documentation as to the procedure and rationale. Ten minutes after emailing the report to his clients, Perrago buys Graham stock for his mother's account. With respect to the MTA Code of Ethics, Perrago's actions are:
  • A. In violation of the Code with respect to the methodology, but not the security purchase
  • B. In violation of the Code with respect to the security purchase, but not the methodology
  • C. Not in violation of the Code
  • D. In violation of the Code with respect to both the methodology and the security purchase
Answer: D
Explanation:
Detailed Explanation:
(Note: The provided answer key states D. Let's analyze why).
* Security Purchase:Front-running. Buying stock 10 minutes after issuance is likely not enough time for clients to act. He must give clients adequate opportunity to act on the recommendation before trading for himself or family (Priority of Transactions).
* Methodology:While innovation is allowed, the Code requires using methods that are generally accepted or proving reasonable basis. Using "very new and controversial" methods might be seen as lacking a "reasonable basis" unless heavily substantiated. The key likely flags both as violations7777.

NEW QUESTION # 186
The concept that best helps quantify the risk of a trading system is the:
  • A. Length of average winning trade
  • B. Longest flat time
  • C. Maximum cumulative drawdown
  • D. Maximum favorable excursions
Answer: C
Explanation:
Detailed Explanation:
Maximum Cumulative Drawdown measures the largest peak-to-trough decline in account equity. It is the standard metric for assessing the "pain" or risk of ruin associated with a specific trading strategy.

NEW QUESTION # 187
The Dow Theory uses ONLY:
  • A. High prices
  • B. All of the above
  • C. Low prices
  • D. Closing prices
Answer: D
Explanation:
Detailed Explanation:
As established in previous questions, Charles Dow believed the closing price was the most psychologically significant price of the day, and Dow Theory analysis is based strictly on closing data.

NEW QUESTION # 188
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