2026 Updated Verified CMT-Level-I Downloadable Printable Exam Dumps
The Ultimate CMT Association CMT-Level-I Dumps PDF Review
The CMT-Level-I exam is a computer-based test that consists of 132 multiple-choice questions. CMT-Level-I exam is divided into two sections, with the first section covering the basic principles and concepts of technical analysis, while the second section focuses on the application of technical analysis in real-world trading scenarios. Candidates must achieve a score of 70% or higher to pass the exam and earn the CMT Level I certification. The CMT-Level-I certification is a valuable credential that demonstrates a candidate's knowledge and expertise in technical analysis, making it a highly sought-after qualification by employers in the financial industry.
NEW QUESTION # 156
In stock markets, the only group making successive profits is:
- A. Large institutions
- B. Small speculators
- C. Derivatives traders
- D. Company Insiders
Answer: D
Explanation:
Detailed Explanation:
Company Insiders (directors, officers, etc.) have access to non-public information regarding their company's operations. Historically, heavy insider buying is considered one of the most reliable signals of future price appreciation, and this group consistently tends to be on the right side of the trade compared to the public or speculators.
NEW QUESTION # 157
Wave 4 can enter the top of wave 1 if:2425
- A. A motive wave is being formed26
- B. A vicious bear market is taking place
- C. A diagonal is being formed27
- D. A sharper, complex correction is taking place
Answer: C
Explanation:
Detailed Explanation:
One of the cardinal rules of Elliott Wave Theory is that Wave 4 cannot overlap with the territory of Wave 1.
However, the only exception to this rule applies when the pattern is a Diagonal (Leading or Ending Diagonal), where overlaps are characteristic.
NEW QUESTION # 158
Alex found that Visha Tech stock had given a buy signal on 10 minute chart but sell signal on hourly chart.
End of the day charts are neutral. What action would be most appropriate in this condition?
- A. Short sell the stock
- B. Buy the stock but keep the stop loss slightly more away
- C. Buy the stock with a tight stop loss
- D. Do not trade the stock
Answer: D
Explanation:
Detailed Explanation:
Conflicting signals across multiple timeframes (Buy on short-term, Sell on intermediate, Neutral on long- term) indicate a lack of clear trend or consensus. The most prudent technical action is to stand aside (do not trade) until the timeframes align or a clear signal emerges.
NEW QUESTION # 159
Standard deviation is:
- A. The square root of the variance
- B. A descriptive statistic which defines the central tendency
- C. The covariance of two securities
- D. The average deviation
Answer: A
Explanation:
Detailed Explanation:
In statistics, the Standard Deviation is mathematically defined as the square root of the variance. It measures the dispersion of a dataset relative to its mean.
NEW QUESTION # 160
The stock price of Kennedy Consultants is falling for last 30 days. Ronny observed that one indicator was still rising continuously. Which of the following is he observing?
- A. Relative strength
- B. 10 day Moving average
- C. Rate of change
- D. Relative strength index
Answer: A
Explanation:
Detailed Explanation:
Relative Strength (Comparative) measures a stock against a benchmark. Even if a stock is falling, if the benchmark is falling faster, the ratio (Stock/Benchmark) will rise. Thus, it is possible for the Relative Strength line to rise while the absolute price is falling.
NEW QUESTION # 161
Which is an example of candle pattern filtering?
- A. Using cycles to confirm the existence of a pattern
- B. Accepting only those patterns that are confirmed by the intermediate trend
- C. Using western techniques to confirm a candle pattern
- D. Accepting only those patterns that fit the strict definition of their pattern
Answer: C
Explanation:
Detailed Explanation:
"Filtering" refers to using additional tools to verify a signal and reduce false positives. A common method is using Western techniques (such as support/resistance levels, moving averages, or momentum indicators like RSI) to confirm a Japanese candlestick signal.
NEW QUESTION # 162
A general rule for risk control in trading is:
- A. The majority of capital should be committed to the strongest market
- B. Never use stops
- C. At least 50% of total equity should be dedicated to the market group with the strongest trend
- D. The total amount risked on any single trade should not exceed 5% of equity
Answer: D
Explanation:
Detailed Explanation:
Proper money management dictates limiting exposure on any single bet. A common textbook rule (and the one cited in the source) is that the total amount risked on any single trade should not exceed 5% of total equity (Note: Modern standards often suggest 1-2%, but 5% is the answer in this context)44.
NEW QUESTION # 163
Using intraday 1x1 point and figure charts, which breakout is MOST significant?
- A. The breakouts are of equal significance
- B. A breakout from a 10 column congestion zone
- C. A breakout from a 15 column congestion zone
- D. A breakout from a 5 column congestion zone
Answer: C
Explanation:
Detailed Explanation:
In P&F analysis, the width of the base (congestion zone) determines the potential strength and distance of the subsequent move (Cause and Effect). A 15-column wide base represents more energy built up (more cause) than a 5 or 10-column base, making the breakout more significant.
NEW QUESTION # 164
Which of the following is NOT a proper interpretation of volume and trend in the futures markets?
- A. Volume rising and open interest falling equals position liquidation
- B. Volume rising and open interest rising equals trend reversal
- C. Volume falling and open interest rising equals slow accumulation
- D. Volume falling and open interest falling equals consolidation phase
Answer: B
Explanation:
Detailed Explanation:
Standard interpretation states that if Volume and Open Interest are both rising, it confirms the strength of the current trend (new money entering). It does not signal a trend reversal. Therefore, statement A is the incorrect interpretation4.
NEW QUESTION # 165
Detrended time series:
- A. Shows a distinct direction of movement
- B. Is never flat
- C. Shows distinct patterns like head and shoulder
- D. Tends to remain range bound
Answer: D
Explanation:
Detailed Explanation:
Detrending removes the long-term trend component from the data to isolate the cyclical or short-term fluctuations. Once the trend is removed, the resulting series oscillates around a mean (zero line), appearing range bound or stationary.
NEW QUESTION # 166
The treasury yield curve is usually:
- A. Humped
- B. Flat
- C. Upward sloping
- D. Inverted
Answer: C
Explanation:
Detailed Explanation:
In a healthy economy, investors demand a higher yield for locking up their money for longer periods (liquidity premium and inflation risk). Therefore, the normal shape of the yield curve is upward sloping.
NEW QUESTION # 167
What is the measuring formula for double top bar chart pattern?
- A. Subtract the distance from the lowest peak from the low of the reaction
- B. Subtract the distance from the highest peak from the low of the reaction
- C. Subtract the distance from the average of the two peaks from the low of the reaction
- D. Add the height to the breakout
Answer: B
Explanation:
Detailed Explanation:
To measure a Double Top target:
* Measure the distance from the Peak to the Reaction Low (Valley).
* Subtract that distance from the Low of the reaction (the breakdown point).
This matches option B18.
NEW QUESTION # 168
Philipe Cartier, a CMT Level 2 candidate, is an expert in seasonal effects in equity markets. In a television interview, Cartier says that "In the US, small capitalization stocks have a tendency to show abnormal strength in January. Since we are approaching year-end, investors might want to consider increasing their exposure to small capitalization equities." With respect to the MTA code of Ethics, Cartier's actions are:
- A. In violation as the statement is inaccurate as larger capitalization stocks generally perform better in January
- B. Not in violation as he is only a Level 2 candidate and is not bound by the Code
- C. In violation as the analysis of seasonal effects is not reasonable in the field of technical analysis
- D. Not in violation of the Code
Answer: D
Explanation:
Detailed Explanation:
Cartier is stating a widely recognized market anomaly (The January Effect) and framing it as a tendency
/possibility ("have a tendency", "investors might want to consider"). He is distinguishing between fact and opinion and having a reasonable basis for his recommendation. Therefore, he is not in violation3333.
NEW QUESTION # 169
Which of the following is an INCORRECT interpretation of the candlestick piercing pattern?
- A. It occurs after a downtrend
- B. It is a bearish reversal pattern
- C. The smaller the penetration into the price levels of the prior day's real body, the greater the predictive power
- D. It is a bullish reversal pattern
Answer: B
Explanation:
Detailed Explanation:
The Piercing Pattern is a bullish reversal pattern (the opposite of Dark Cloud Cover). Therefore, the statement that it is a "bearish reversal pattern" is the INCORRECT one. (Note: Option C is also technically incorrect as deeper penetration usually implies greater power, but B is a definitional error).
NEW QUESTION # 170
In Elliott wave theory, sub-waves 2 and 4 are called:
- A. Impulse waves
- B. Zigzags
- C. Motive waves
- D. Corrective waves
Answer: D
Explanation:
Detailed Explanation:
In a 5-wave motive sequence, waves 1, 3, and 5 move in the direction of the primary trend (Impulse). Waves
2 and 4 move against the trend and are therefore corrective waves.
NEW QUESTION # 171
Triangle price patterns should be accompanied by:
- A. A gradual drop-off in volume until the breakout
- B. Heavier volume in the direction of the eventual breakout
- C. No discernible difference in volume until after the breakout occurs
- D. Active volume within the pattern
Answer: A
Explanation:
Detailed Explanation:
Triangles are consolidation patterns representing indecision and a tightening of the trading range. As the pattern develops and moves toward the apex, trading activity typically dries up, leading to a gradual drop-off in volume.
NEW QUESTION # 172
Which of the following is combined with Wilder's Parabolic Price/Time System to produce the Directional Parabolic System?
- A. Trendlines
- B. Directional movement index
- C. Stops
- D. Average divergence index
Answer: B
Explanation:
Detailed Explanation:
J. Welles Wilder designed the Directional Movement Index (DMI) (consisting of ADX, +DI, -DI). Combining the trend-identification of DMI with the trailing stop nature of Parabolic SAR creates a complete system known as the Directional Parabolic System43.
NEW QUESTION # 173
Which is NOT CORRECT regarding the three advancing white soldiers candlestick pattern?
- A. It is composed of three white candles with successively higher closes
- B. If the second or third candle show signs of weakening the pattern is called a stalled pattern
- C. Each real body opens within or near the prior session's real body
- D. It is a gradual and steady rise
Answer: B
Explanation:
Detailed Explanation:
(Note on Source Key): The source key identifies D as the answer ("Not Correct"). However, technically, if the advance stalls (small body at the top), it is called a Stalled Pattern (Deliberation). The subtle error might be in the phrasing or definition used in the specific text the exam is based on, or perhaps A is the intended error in some contexts. But following the provided verified key, D is the selection. In standard Nison analysis,
"Stalled Pattern" is indeed the name for a weakening soldier, so this question might contain a specific nuance or error in the source bank. Proceed with D as per the key.
NEW QUESTION # 174
The chart type which integrates volume directly into the price bar is the:
- A. Value Weighted Average Price chart
- B. Renko chart
- C. Ichimoku Cloud chart
- D. Equivolume chart
Answer: D
Explanation:
Detailed Explanation:
Equivolume charts (developed by Richard Arms) replace standard bars with boxes. The height of the box represents the high-low range, and the width of the box represents the volume for that period.
NEW QUESTION # 175
Which of the following is TRUE regarding moving averages?
- A. Moving averages lead price action
- B. Oscillators usually provide more valid trade signals than moving averages
- C. Moving averages usually provide more valid trade signals than oscillators
- D. Moving averages are more likely to provide the most valid trade signals in trending markets
Answer: D
Explanation:
Detailed Explanation:
Moving averages are trend-following indicators. They work best and provide profitable signals when the market is trending. In sideways markets, they fail (whipsaw). Oscillators are the opposite (best in sideways)28.
NEW QUESTION # 176
Who maintains the value of currency of a country within limits?137
- A. UNO139
- B. Government of that country138
- C. Investors and hedgers
- D. Central ban140k of that country
Answer: D
Explanation:
Detailed Explanation:
The Central Bank (e.g., the Fed, ECB, BoJ) is responsible for monetary policy and often intervenes in the foreign exchange market or adjusts interest rates to maintain the value of the domestic currency relative to its mandate (stability/inflation control).
NEW QUESTION # 177
Trend lines:
- A. Offer late confirmation of a change in trend
- B. Can only be determined by least square regression method
- C. Are more significant the longer they stay in force
- D. Are not useful for short-term trading
Answer: C
Explanation:
Detailed Explanation:
The significance of a trend line is determined by its duration and the number of times it has been tested. A trend line that has been respected for years is more significant (stronger support/resistance) than one that has existed for only a few days.
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NEW QUESTION # 178
The following is NOT common of reversal patterns:
- A. The break of a major trendline
- B. The larger the pattern the greater the subsequent move
- C. The existence of a prior trend
- D. Tops usually take longer to form than bottoms
Answer: D
Explanation:
Detailed Explanation:
It is a general rule in technical analysis that bottoms take longer to form (accumulation is a gradual, quiet process), while tops are often shorter and more volatile (driven by fear and euphoria). Therefore, saying "Tops usually take longer" is incorrect.
NEW QUESTION # 179
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