2021 Latest 100% Exam Passing Ratio - CMT-Level-II Dumps PDF
Pass Exam With Full Sureness - CMT-Level-II Dumps with 264 Questions
NEW QUESTION 129
When using a two moving averages (MA. system, which of the following rules can be utilized to generate a buy signal?
- A. Buy when the faster moving average hooks the slower moving average from below.
- B. Buy when the current price crosses above both moving averages.
- C. Buy when the faster moving average crosses the slower moving average from above.
- D. Buy when the faster moving average hooks the slower moving average from above.
Answer: B
NEW QUESTION 130
Which of the following are valid point and figure chart trading tactics?
- A. Long positions are closed when they fall below the trend line and short positions are closed when they rise above the trend line
- B. All of the ab
- C. Simple trade signals can be used for new commitments whereas complex signals are needed for liquidation purposes
- D. Stop losses should be placed below the last column of Os in an uptrend
Answer: D
NEW QUESTION 131
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. Implying that he can guarantee a return based on just 2 years of performance.
- B. Stating his past performance as long as it is fact.
- C. Imputing his past performance to future performance.
- D. Implying that he can guarantee a return.
Answer: B
NEW QUESTION 132
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 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
- 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 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
Answer: B
NEW QUESTION 133
This indicator measures the distance between two exponential moving averages of advances minus declines.
- A. TRIN
- B. McClellan Oscillator
- C. Ayres-Hughes Breadth Indicator
- D. The SENTIX Index
Answer: B
NEW QUESTION 134
Based on the chart given below; identify the best course of action:
- A. 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.
- B. ROC has turned negative which is a sell signal; should initiate a short position.
- C. 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.
- D. Negative divergence observed between price and ROC should be ignored as prices are near life time highs.
Answer: C
NEW QUESTION 135
Which of the following point and figure trading techniques limits risk compared to more basic trading rules?
- A. Buy or sell on pullbacks after initial trade signal
- B. Buy or sell as soon as a new column is created on the chart
- C. Close out your trade on the second reversal back in the direction of the original signal
- D. Take small consistent profits, but allow large, windfall profitable positions to run
Answer: A
NEW QUESTION 136
Extrapolation errors occur when investors:
- A. assume that current and recent conditions will prevail well into the future, also causing them to ignore the evidence of changing circumstances.
- B. tend to be overconfident regarding their abilities and make major mistakes like too little diversification and over trading.
- C. try to identify patterns in financial markets that do not exist.
- D. are tricked into thinking that they can foretell the future because they can easily observe the past.
Answer: A
NEW QUESTION 137
Which is historically the strongest three-month period for the U.S. equity markets?
- A. June, July and August
- B. January, February and March
- C. October, November and December
- D. March, April and May
Answer: C
NEW QUESTION 138
Over a period of 4 weeks, a swing trader notices that for a particular security the ADX reading has declined from a high of 45 to a current low of 15. What tool may best help the trader isolate a trading opportunity over the next few days?
- A. A Linear Regression Line
- B. An Exponential Moving Average
- C. An Oscillator
- D. A Simple Moving Average
Answer: C
NEW QUESTION 139
A Harami most closely resembles what "western" charting pattern?
- A. Andrew's Pitchfork
- B. Outside day
- C. Gap
- D. Inside day
Answer: D
NEW QUESTION 140
Which of the following is NOT continuation pattern?
- A. Rising three methods
- B. Tweezers
- C. Separating lines
- D. Windows
Answer: B
NEW QUESTION 141
Which of the following graphical representation is used to plot a single statistic?
- A. Line charts
- B. Point-and-figure charts
- C. Candlestick charts
- D. Bar charts
Answer: A
NEW QUESTION 142
Which of the following is a CORRECT usage of oscillators in technical analysis?
- A. All of the above
- B. Oscillators are least useful when they reach an extreme reading near the upper or lower ends of their boundaries
- C. When an oscillator crosses the zero line, it provides an important trading signal in the direction of the trend
- D. Divergences between price and oscillators are important confirmation signals
Answer: C
NEW QUESTION 143
Which of the following is NOT a valid technical method for determining price targets?
- A. Discounted value of expected future cash flows
- B. Channel width
- C. Measure of triangle base from breakout
- D. Height of the head in a head and shoulders pattern
Answer: A
NEW QUESTION 144
Which of the following is a true statement according to Elliott Wave Theory?
- A. Ratios are used to define price objectives
- B. The number of waves follows the Pythagorean theorem
- C. The rule of alternation states that up waves follow down waves
- D. Bear markets do not fall below the top of the prior fourth wave
Answer: A
NEW QUESTION 145
A morning star pattern is typically:
- A. A continuation consisting of at least five candles
- B. A bottom reversal pattern consisting of three candles
- C. A very small pattern consisting of two candles that is infrequently seen
- D. A top reversal pattern consisting of three candles
Answer: B
NEW QUESTION 146
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. Change the charting scale to logarithmic
- B. Increase the time frame on the chart
- C. Change the scale to arithmetic
- D. Add the daily opening prices to provide a more visual benchmark of price changes
Answer: A
NEW QUESTION 147
Which of the following figures can not be plotted on a point and figure chart when we have to plot months and years together? Choose the best possible answer.
- A. The year is displayed at the bottom of the column and the month is not plotted
- B. The month is displayed at the bottom of the column and the year is not plotted
- C. The month is displayed at the bottom of the column and the number of the year is plotted instead of the X or O
- D. The year is displayed at the bottom of the column and the number of the month is plotted instead of the X or O
Answer: D
NEW QUESTION 148
In regards to cycle analysis, translation is:
- A. Useful in checking where the trend direction is headed or if it is changing
- B. To the left when the peak is beyond the halfway point
- C. Distance between troughs
- D. Distance between peaks
Answer: A
NEW QUESTION 149
Which of the following asset classes as a leading indicator for the stock market?
- A. Bonds
- B. Bullion
- C. Energy
- D. Precious metal
Answer: A
NEW QUESTION 150
ALL of the following are standard patterns used with 3-Box reversal point and figure charts, EXCEPT:
- A. Bullish or Bearish Triangle
- B. Double Top or Double Bottom
- C. Bullish or Bearish Fulcrum
- D. Triple Top or Triple Bottom
Answer: C
NEW QUESTION 151
Which of the following is one of the disadvantages of computerized trading systems?
- A. Profit trades are exited too early
- B. Most computerized systems are unprofitable in non-trending markets
- C. Trading decisions are less consistent
- D. Computerized systems miss many market trends
Answer: B
NEW QUESTION 152
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