[Q128-Q148] CMT-Level-II Exam Brain Dumps - Study Notes and Theory [Nov-2021]

CMT-Level-II Exam Brain Dumps - Study Notes and Theory [Nov-2021]

100% Guaranteed Results CMT-Level-II Unlimited 264 Questions

NEW QUESTION 128
A correlation coefficient of 0.75 between two variables suggests ______ relationship:

A. extremely strong
B. non-existent
C. low
D. strong

Answer: D

NEW QUESTION 129
Which of the following patterns resonate with the price action highlighted within the black box marked 'A' &
'B'?

A. Bullish Engulfing & Shooting Star
B. Bullish Engulfing & Hanging Man
C. Piercing Line & Evening Star
D. Piercing Line & hammer

Answer: C

NEW QUESTION 130
Which of the following is a continuation pattern?

A. Doji
B. Hammer
C. Windows
D. Umbrella

Answer: C

NEW QUESTION 131
Which of the following points represents a valid island reversal in the chart below?

A. None of the above
B. A
C. C
D. B

Answer: A

NEW QUESTION 132
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 133
What percentage of return should be earned if you have $100 in the capital and sustain a 20% loss to return to the break-even level of $100?

A. Return 25 percent to the $70 to return to the $100 break-even level
B. Return 25 percent to the $80 to return to the $100 break-even level
C. Return 30 percent to the $70 to return to the $100 break-even level
D. Return 30 percent to the $80 to return to the $100 break-even level

Answer: B

NEW QUESTION 134
Based on the chart given below; identify the best course of action:

A. ROC has turned negative which is a sell signal; should initiate a short position.
B. Negative divergence observed between price and ROC should be ignored as prices are near life time highs.
C. Shares are making a series of higher highs and higher lows; ROC has turned negative which is confirming the price action; should use current pullback to add to position.
D. Shares are losing momentum which can be confirmed by negative divergence between price and ROC; trader should be cautious and be quick to reduce position on a violation of trendline.

Answer: D

NEW QUESTION 135
On which of the following factors will the analyst choose the scale for the trend analysis?

A. It depends upon the type of analysis or the period being explored
B. It depends upon the type of analysis only
C. It depends upon the period being explored only
D. It depends upon the type of analysis and the period being explored

Answer: D

NEW QUESTION 136
What steps must analysts take in introducing new methods of technical analysis under the MTA Code of Ethics?

A. New procedures must be documented as to procedure and rationale
B. New methods need not be consistent with the accumulated knowledge of the field of technical analysis
C. All new techniques must be fully documented even if proprietary methods must be disclosed to do so
D. New procedures must be supported by adequate back testing confirmed by at least technician

Answer: A

NEW QUESTION 137
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 138
Which crossover in MACD-Histogram is the strongest signal generated in the following chart of Alphabet Inc.
C ABD

A. A
B. C
C. B
D. D

Answer: D

NEW QUESTION 139
The _______________ tracks the degree of mass participation in rallies and decline.

A. RSI
B. Relative strength
C. MACD line
D. Advance/Decline line

Answer: D

NEW QUESTION 140
Which is the CORRECT interpretation of the candlestick hanging man pattern?

A. A hanging man comes after a market rally
B. A hanging man always has a black real body
C. A hanging man has no lower shadow
D. A hanging man need not be confirmed by other indicators

Answer: A

NEW QUESTION 141
Which of the following the correct description of the law of percentages in the field of decision making and selection?

A. A relative loss of 20% can be made back with a relative gain of 20%, but an absolute 10% loss requires a 25% gain to break even
B. A relative gain of 20% can be made back with a relative loss of 20%, but an absolute 20% loss requires a 25% gain to break even
C. A relative loss of 20% can be made back with a relative gain of 20%, but an absolute 20% loss don't require a 25% gain to break even
D. A relative loss of 20% can be made back with a relative gain of 20%, but an absolute 20% loss requires a 25% gain to break even

Answer: D

NEW QUESTION 142
Standard deviation is:

A. An inferential statistic which measures symmetry around the mean
B. A descriptive statistic which defines the central tendency
C. The square root of the variance
D. The covariance of two securities

Answer: C

NEW QUESTION 143
Which of the following is a proper technical usage of MACD indicators?

A. MACD histograms are best used to initiate new positions contrary to the price trend
B. When the slower MACD line is above the faster line, the MACD histogram will be above zero
C. Trendline analysis can be used with MACD
D. MACD crossover rules are different than other crossover rules

Answer: C

NEW QUESTION 144
To calculate moving averages for a point-and-figure chart: