10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet CMT Level 1 - Sample Questions Terms in this set (137) Cycles are GENERALLY Answer: b. Low to low measured a. High to low Reference: Dahlquist, Julie R., and Charles D. b. Low to low Kirkpatrick. Technical Analysis: The Complete c. High to high Resource for Financial Market Technicians. d. Either b or c Chapter 19. This cycle principle states as Answer: b. Variation stocks go through similar cycles, the size and Reference: Dahlquist, Julie R., and Charles D. magnitude will differ. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. a. Commonality Chapter 19. b. Variation c. Summation d. Proportionality CMT Level 1 - Sample Questions 1/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet In regards to cycle analysis, Answer: c. Useful in checking where the trend translation is: direction is headed or if it is changing a. Distance between troughs Reference: Dahlquist, Julie R., and Charles D. b. Distance between peaks Kirkpatrick. Technical Analysis: The Complete c. Useful in checking where Resource for Financial Market Technicians. the trend direction is headed Chapter 19. or if it is changing d. To the left when the peak is beyond the halfway point Which would be the MOST Answer: a. Phase useful aspect of a cycle in studying the relationship Reference: Dahlquist, Julie R., and Charles D. between cycles of different Kirkpatrick. Technical Analysis: The Complete lengths? Resource for Financial Market Technicians. Chapter 19. a. Phase b. Period c. Amplitude d. None of the above A complete Elliott wave cycle Answer: c. 8 is made up of how many waves? Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. 5 Resource for Financial Market Technicians. b. 3 Chapter 20. c. 8 d. 13 CMT Level 1 - Sample Questions 2/50 10/11/21, 4:29 PM When analyzing long term CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: b. Logarithmic chart price movements, it could be helpful to use which type of Reference: Dahlquist, Julie R., and Charles D. chart? Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. a. Candle chart Chapter 11. b. Logarithmic chart c. Bar chart d. Point and figure chart In a normal 5-wave Elliott Answer: a. 3rd impulse wave, which wave is USUALLY expected to be the Reference: Dahlquist, Julie R., and Charles D. longest and most dynamic? Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. a. 3rd Chapter 20. b. 5th c. 1st d. 1st but sometimes 3rd Which of the following would Answer: d. Flag MOST likely be a continuation pattern? Reference: Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition. a. Engulfing pattern Chapter 11. b. Head and shoulders c. Double bottom d. Flag CMT Level 1 - Sample Questions 3/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet Which of the following would Answer: d. All the above are considered to be NOT be considered a support support levels level? Reference: Edwards, Robert D. and Magee, John, a. Previous high Technical Analysis of Stock Trends, 9th Edition. b. Previous low Chapter 13. c. Trading range d. All the above are considered to be support levels According to Robert Rhea's Answer: c. I, II, and III hypotheses: I. The primary trend is Reference: Dahlquist, Julie R., and Charles D. inviolate Kirkpatrick. Technical Analysis: The Complete II. The averages discount Resource for Financial Market Technicians. everything Chapter 6. III. Dow Theory is not infallible IV. Dow Theory is predictable a. I and II b. I and III c. I, II, and III d. I, II, III, and IV For a breakout or breakdown Answer: c. Three-quarters from a triangle to be considered valid it should Reference: Dahlquist, Julie R., and Charles D. occur NO MORE than _______ of Kirkpatrick. Technical Analysis: The Complete the distance to the apex from Resource for Financial Market Technicians. the beginning of the pattern? Chapter 15. a. One-half b. Two-thirds c. Three-quarters d. Five-sixths CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 4/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet What is indicated when Answer: d. A stock's volatility has decreased Bollinger Bands narrow? Reference: Dahlquist, Julie R., and Charles D. a. A stock is ready for a rally Kirkpatrick. Technical Analysis: The Complete b. A stock is ready for a Resource for Financial Market Technicians. decline Chapter 14. c. A stock's volatility has increased d. A stock's volatility has decreased Upgrade to remove adverts In the Dow Theory, the MOST Only US$3.99/month Answer: d. Close important price is the Reference: Dahlquist, Julie R., and Charles D. a. Open Kirkpatrick. Technical Analysis: The Complete b. High Resource for Financial Market Technicians. c. Low Chapter 6. d. Close CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 5/50 10/11/21, 4:29 PM Which is/are considered CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: d. All the above important in determining the validity of a trendline break? Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Time Resource for Financial Market Technicians. b. Price Chapter 13. c. Volume d. All of the above Which BEST characterizes Answer: a. There is sideways price action continuation patterns? Reference: Dahlquist, Julie R., and Charles D. a. There is sideways price Kirkpatrick. Technical Analysis: The Complete action Resource for Financial Market Technicians. b. They take a long time to Chapter 17. form c. They usually represent long-term patterns d. They signal the start of a new trend Which is NOT true of a buying Answer: a. Prices fall sharply at first climax? Reference: Dahlquist, Julie R., and Charles D. a. Prices fall sharply at first Kirkpatrick. Technical Analysis: The Complete b. Volume is very heavy Resource for Financial Market Technicians. c. The close is near the low Chapter 15. end of the daily range d. Prices initially rise sharply CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 6/50 10/11/21, 4:29 PM In order for a Dow Theory sell CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: d. b and c signal to be confirmed Reference: Dahlquist, Julie R., and Charles D. a. The Dow Jones Industrials Kirkpatrick. Technical Analysis: The Complete (DJI) and the Dow Transports Resource for Financial Market Technicians. (DJT) must peak Chapter 6. simultaneously b. The DJI and DJT must fail to confirm at the highs c. Both the DJI and DJT must break below an important intermediate term support level d. b and c The Dow Theory uses ONLY Answer: c. Closing prices a. High prices Reference: Dahlquist, Julie R., and Charles D. b. Low prices Kirkpatrick. Technical Analysis: The Complete c. Closing prices Resource for Financial Market Technicians. d. All of the above Chapter 6. A company whose stock is in Answer: b. Market discounting a well-established uptrend reports earnings slightly Reference: Pring, Martin J. Technical Analysis above consensus estimates. Explained. Chapter 26. After an initial rally, the stock then ends lower on the day. This would PROBABLY be an example of... a. Investor ennui b. Market discounting c. Unrealistic expectations d. A short-coming of fundamental analysis CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 7/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet Point and figure charts are Answer: b. Identifying areas of accumulation or LEAST suited to distribution a. Establishing targets Reference: du Plessis, Jeremy. The Definitive Guide b. Identifying areas of to Point and Figure. Chapter 1 accumulation or distribution c. Identifying areas of support and resistance d. Identifying breakouts In a doji candlestick Answer: c. Supply and demand are in balance a. Supply exceeds demand Reference: Dahlquist, Julie R., and Charles D. b. Demand exceeds supply Kirkpatrick. Technical Analysis: The Complete c. Supply and demand are in Resource for Financial Market Technicians. balance Chapter 17. d. All the above Which of the following IS a Answer: a. 50% Fibonacci ratio? Reference: Dahlquist, Julie R., and Charles D. a. 50% Kirkpatrick. Technical Analysis: The Complete b. 75% Resource for Financial Market Technicians. c. 33% Chapter 20. d. 66% Upgrade to remove adverts Only US$3.99/month CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 8/50 10/11/21, 4:29 PM When using a moving average CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: c. The fast falls below the slow crossover system to generate buy/sell signals, a SELL signal Reference: Pring, Martin J. Technical Analysis would be generated when Explained. Chapter 9. a. The slower moving average falls below the faster average b. The slow rises above the fast c. The fast falls below the slow d. Either a or c Moving averages are of LEAST Answer: a. A sideways trend use in generating buy or sell signals in Reference: Pring, Martin J. Technical Analysis Explained. Chapter 9. a. A sideways trend b. A moderately sloping uptrend c. A steep downtrend d. Not especially useful in any of them A stock trades in a range Answer: d. There would be no count between 51 and 55 for 10 days and then moves higher. If you Reference: du Plessis, Jeremy. The Definitive Guide have been charting the stock to Point and Figure. Chapter 4. with a 3 box reversal point and figure chart, with 2 points assigned per box, what would the horizontal count be? a. 30 points b. 10 points c. 60 points d. There would be no count CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 9/50 10/11/21, 4:29 PM On balance volume is USEFUL CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: d. All the above to Reference: du Plessis, Jeremy. The Definitive Guide a. Confirm price to Point and Figure. Chapter 4. b. Spot divergence c. Clarify volume trends d. All the above Common filters used to Answer: d. All the above confirm a trendline break INCLUDE Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Penetration above/below Resource for Financial Market Technicians. the trendline by a set Chapter 13. percentage b. A pre-defined period of time during which prices stay above/ below the trendline c. A close above/below the trendline d. All the above As a general rule, in Answer: b. Decreases as the pattern develops rectangle, triangle, flag and pennant patterns, volume Reference: Pring, Martin J. Technical Analysis GENERALLY Explained. Chapter 5. a. Increases as the pattern develops b. Decreases as the pattern develops c. Stays constant as the pattern develops d. Shows signs of accumulation CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 10/50 10/11/21, 4:29 PM Which type of gap is LEAST CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: b. Breakaway likely to be filled when it occurs with high volume? Reference: Pring, Martin J. Technical Analysis Explained. Chapter 6. a. Common b. Breakaway c. Exhaustion d. Runaway Which of the following Answer: b. 45% percentage parameters is NOT a widely recognized Reference: Dahlquist, Julie R., and Charles D. percentage retracement? Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. a. 66% Chapter 13. b. 45% c. 50% d. 33% What is intermarket analysis? Answer: a. Study of the interrelationships between the various independent financial markets a. Study of the interrelationships between the Reference: Dahlquist, Julie R., and Charles D. various independent financial Kirkpatrick. Technical Analysis: The Complete markets Resource for Financial Market Technicians. b. Study of the internals of the Chapter 21. various financial markets c. Study of the various international financial markets and how they influence each other d. None of the above CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 11/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet The secondary trend is Answer: b. Weeks or months; weeks or months measured in __________, and the intermediate trend is Reference: Dahlquist, Julie R., and Charles D. measured in __________. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. a. Months or years; days or Chapter 6. weeks b. Weeks or months; weeks or months c. Days or weeks; intraday minutes d. Intraday minutes; weeks and months Upgrade to remove adverts Only US$3.99/month How would you use relative Answer: c. Divide the price of one sector by an strength analysis when industry benchmark and compare comparing sectors? Reference: Dahlquist, Julie R., and Charles D. a. Compare RSIs - the higher Kirkpatrick. Technical Analysis: The Complete the number, the more bullish Resource for Financial Market Technicians. the sector Chapter 21. b. Divide the price of one sector by another and compare c. Divide the price of one sector by an industry benchmark and compare d. We don't compare sectors, we compare industry groups CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 12/50 10/11/21, 4:29 PM To INCREASE the sensitivity CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: b. Decrease the box size of a 5 x 3 point and figure chart, one would Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 2. a. Increase the box size b. Decrease the box size c. Increase the number of boxes needed for a reversal d. Both a and c In point and figure charting, Answer: a. One box reversal chart the ability to obtain price objectives through use of the Reference: du Plessis, Jeremy. The Definitive Guide horizontal count is a principal to Point and Figure. Chapter 4. advantage of the a. One box reversal chart b. Three box reversal chart c. Five box reversal chart d. All of the above In what charting technique Answer: d. Simplified three box point and figure will trendlines ONLY be drawn charts at 45 degree angles? Reference: du Plessis, Jeremy. The Definitive Guide a. Bar charts to Point and Figure. Chapter 3. b. Candlestick charts c. Swing charts d. Simplified three box point and figure charts CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 13/50 10/11/21, 4:29 PM What pattern is found in point CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: b. Head and shoulders and figure charts? Reference: du Plessis, Jeremy. The Definitive Guide a. Doji to Point and Figure. Chapter 4. b. Head and shoulders c. Island reversal d. All of the above Using intraday 1x1 point and Answer: c. A breakout from a 15 column figure charts, which breakout congestion zone is MOST significant? Reference: du Plessis, Jeremy. The Definitive Guide a. A breakout from a 5 column to Point and Figure. Chapter 1. congestion zone b. A breakout from a 10 column congestion zone c. A breakout from a 15 column congestion zone d. The breakouts are of equal significance Cycles are USUALLY Answer: b. Trough to trough measured from Reference: Dahlquist, Julie R., and Charles D. a. Crest to crest Kirkpatrick. Technical Analysis: The Complete b. Trough to trough Resource for Financial Market Technicians. c. Wheel to wheel Chapter 19. d. Curl to curl CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 14/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet The following is NOT common Answer: c. Tops usually take longer to form than of reversal patterns bottoms a. The existence of a prior Reference: Edwards, Robert D. and Magee, John, trend Technical Analysis of Stock Trends, 9th Edition. b. The larger the pattern the Chapter 6. greater the subsequent move c. Tops usually take longer to form than bottoms d. The break of a major trendline An inverse head and Answer: c. A reversal pattern shoulders pattern is Reference: Edwards, Robert D. and Magee, John, a. A topping pattern Technical Analysis of Stock Trends, 9th Edition. b. Generally unreliable Chapter 6. c. A reversal pattern d. a and b The MAXIMUM objective of Answer: d. 100% retracement reversal patterns is Reference: Edwards, Robert D. and Magee, John, a. 50% retracement Technical Analysis of Stock Trends, 9th Edition. b. 66% retracement Chapter 6. c. .618 of the current price d. 100% retracement CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 15/50 10/11/21, 4:29 PM Which is TRUE of double tops CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: d. Height is often used as a measuring objective a. There are two identifiable peaks at very different price Reference: Pring, Martin J. Technical Analysis levels Explained. Chapter 5. b. Volume is lighter during the first peak c. They often occur at market bottoms d. Height is often used as a measuring objective Which of the following Answer: a. An investor invests the same dollar describes an equally amount in each security weighted average? Reference: Dahlquist, Julie R., and Charles D. a. An investor invests the same Kirkpatrick. Technical Analysis: The Complete dollar amount in each security Resource for Financial Market Technicians. b. Is adjusted by a divisor Chapter 5. c. Considers the market capitalization of each security in the average d. Is the way the Dow Jones Industrial Average is calculated CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 16/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet A REASONABLE price Answer: c. Equivalent to the distance between the objective once a stock has head and neckline completed a head and shoulders pattern is Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th a. 100% of the previous trend Edition.Chapter 6. b. Derived using the Fibonacci Ratio c. Equivalent to the distance between the head and neckline d. Depends on the action of the accompanying volume A continuation pattern is Answer d. All of the above a. A pause in the prevailing Reference: Dahlquist, Julie R., and Charles D. trend Kirkpatrick. Technical Analysis: The Complete b. Usually a sideways price Resource for Financial Market Technicians. action Chapter 15 c. Usually a near term or intermediate term pattern d. All of the above A symmetrical triangle is Answer d. All of the above a. Also called a coil Reference: Dahlquist, Julie R., and Charles D. b. Usually a continuation Kirkpatrick. Technical Analysis: The Complete pattern Resource for Financial Market Technicians. c. A temporary pause in the Chapter 15 existing trend d. All of the above CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 17/50 10/11/21, 4:29 PM The apex of a triangular CMT Level 1 - Sample Questions Flashcards | Quizlet Answer d. All of the above pattern is Reference: Dahlquist, Julie R., and Charles D. a. The point where two lines Kirkpatrick. Technical Analysis: The Complete meet Resource for Financial Market Technicians. b. A point that helps to time Chapter 15 and measure the potency of the pattern c. An important support or resistance level after the breakout occurs d. All of the above Volume should diminish Answer a. True during the price swings within a triangular pattern Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. True Resource for Financial Market Technicians. b. False Chapter 15 c. Sometimes d. Only on the downside swings The breakout from a triangle Answer: d. All of the above formation Reference: Dahlquist, Julie R., and Charles D. a. Should take place with a Kirkpatrick. Technical Analysis: The Complete sharp increase in volume Resource for Financial Market Technicians. b. Should take place between Chapter 15 two-thirds to three-fourths of the way through the pattern c. Is a price level that immediately becomes support/resistance d. All of the above CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 18/50 10/11/21, 4:29 PM The descending triangle is just CMT Level 1 - Sample Questions Flashcards | Quizlet Answer d. b and c a mirror image of the ascending triangle and is Reference: Dahlquist, Julie R., and Charles D. generally considered a ______ Kirkpatrick. Technical Analysis: The Complete pattern Resource for Financial Market Technicians. Chapter 15 a. Bullish b. Bearish c. Continuation d. b and c All of the following are true of Answer d. They are reversal patterns flag and pennant patterns EXCEPT Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. They are short term Resource for Financial Market Technicians. patterns completed in one to Chapter 5 two weeks b. They are preceded by sharp and nearly straight line moves c. They are characterized by a decrease of volume during the formation of the pattern d. They are reversal patterns The measuring technique for Answer b. Height MOST continuation patterns implies that a price objective Reference: Pring, Martin J. Technical Analysis from the breakout point is Explained. Chapter 5 equal to the ____ of the pattern at its broadest point a. Width b. Height c. None of the above d. 100% of prior trend CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 19/50 10/11/21, 4:29 PM The reversal pattern that can CMT Level 1 - Sample Questions Flashcards | Quizlet Answer b. Head and shoulders also appear as a continuation pattern is Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition. a. Saucer Chapter 6 b. Head and shoulders c. Spike d. Double top Stock traders rely heavily on Answer d. b and c a. 4 and 92 day moving Reference: Pring, Martin J. Technical Analysis averages Explained. Chapter 9. Dahlquist, Julie R., and b. 50 and 200 day moving Charles D. Kirkpatrick. Technical Analysis: The averages Complete Resource for Financial Market c. 30 and 40 week moving Technicians. Chapter 14 averages d. b and c A Channel breakout system Answer: d. a and c works extremely well in Reference: Dahlquist, Julie R., and Charles D. a. Trending markets Kirkpatrick. Technical Analysis: The Complete b. Non-trending markets Resource for Financial Market Technicians. c. Daily and weekly charts and Chapter 12 monthly charts d. a and c The moving average Answer: d. All of the above a. Follows the trend Reference: Dahlquist, Julie R., and Charles D. b. Is a smoothing device Kirkpatrick. Technical Analysis: The Complete c. Lags market action Resource for Financial Market Technicians. d. All of the above Chapter 14 CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 20/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet The "crossover method" refers Answer c. A buy or sell signal generated when a to shorter moving average crosses a longer moving average a. Buying the same security high and selling it low twice in Reference: Dahlquist, Julie R., and Charles D. the same day Kirkpatrick. Technical Analysis: The Complete b. Taking the buy/sell Resource for Financial Market Technicians. recommendations of a Chapter 14 fundamental analyst c. A buy or sell signal generated when a shorter moving average crosses a longer moving average d. a and b The most commonly used Answer d. Close price to calculate the moving average is the Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. High Resource for Financial Market Technicians. b. Low Chapter 14 c. Midpoint d. Close In a 10-day simple moving Answer c. 10% average, each day's price is assigned a weighting of Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. 1% Resource for Financial Market Technicians. b. 5% Chapter 14 c. 10% d. 20% CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 21/50 10/11/21, 4:29 PM Which moving average(s) CMT Level 1 - Sample Questions Flashcards | Quizlet Answer d. b and c assign GREATER weight to the most recent data? Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Simple Resource for Financial Market Technicians. b. Weighted Chapter 14 c. Exponential d. b and c Longer-term moving averages Answer d. a and c a. Give fewer buy and sell Reference: Dahlquist, Julie R., and Charles D. signals Kirkpatrick. Technical Analysis: The Complete b. Are better at giving signals Resource for Financial Market Technicians. at major tops Chapter 14 c. "Give back" a lot more when the trend reverses d. a and c Shorter moving averages Answer a. Produce more trades a. Produce more trades Reference: Dahlquist, Julie R., and Charles D. b. Produce fewer whipsaws Kirkpatrick. Technical Analysis: The Complete c. a and b Resource for Financial Market Technicians. d. None of the above Chapter 14 To help confirm a price trend, Answer c. In the direction of the trend volume should expand Reference: Pring, Martin J. Technical Analysis a. On a reversal day Explained. Chapter 5 b. On a strong close c. In the direction of the trend d. When a price target is met CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 22/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet Volume divergence occurs Answer c. A new high in an uptrend takes place on when declining volume a. Volume expands while Reference: Pring, Martin J. Technical Analysis open interest contracts Explained. Chapter 23 b. Volume expands while the daily trading range contracts c. A new high in an uptrend takes place on declining volume d. Volume declines during a sideways congestion pattern On a head and shoulders top, Answer b. Light volume the "head" is typically made on Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition. a. Active volume Chapter 6 b. Light volume c. Breakout volume d. Normal volume Volume in a head and Answer d. During the left shoulder shoulders pattern is HIGHEST where? Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition. a. At the top of the head Chapter 6 b. At the completion of the head c. During the right shoulder d. During the left shoulder CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 23/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet Triangle price patterns should Answer c. A gradual drop-off in volume until the be accompanied by breakout a. Active volume within the Reference: Dahlquist, Julie R., and Charles D. pattern Kirkpatrick. Technical Analysis: The Complete b. Heavier volume in the Resource for Financial Market Technicians. direction of the eventual Chapter 15 breakout c. A gradual drop-off in volume until the breakout d. No discernible difference in volume until after the breakout occurs Technicians believe that Answer b. Volume precedes price a. Price precedes volume Reference: Pring, Martin J. Technical Analysis b. Volume precedes price Explained. Chapter 5 c. Volume and price are typically coincident indicators d. Volume matters most during breakouts Open interest is Answer: b. The number of outstanding contracts in any given day a. The number of contracts traded in a day Reference: Dahlquist, Julie R., and Charles D. b. The number of outstanding Kirkpatrick. Technical Analysis: The Complete contracts in any given day Resource for Financial Market Technicians. c. The sum of total volume Chapter 18 and open interest d. None of the above CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 24/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet The primary use of Answer c. Strengthen the possibility of a reversal candlestick patterns is to or continuation of a price trend a. Define the intermediate and Reference: Dahlquist, Julie R., and Charles D. short-term trends, but not the Kirkpatrick. Technical Analysis: The Complete primary trend Resource for Financial Market Technicians. b. Define the primary, Chapter 17 intermediate, and short-term trends c. Strengthen the possibility of a reversal or continuation of a price trend d. Determine if you are in a bull market or a bear market Which is an example of Answer c. Using western techniques to confirm a candle pattern filtering? candle pattern a. Accepting only those Reference: Dahlquist, Julie R., and Charles D. patterns that fit the strict Kirkpatrick. Technical Analysis: The Complete definition of their pattern Resource for Financial Market Technicians. b. Accepting only those Chapter 11 patterns that are confirmed by the intermediate trend c. Using western techniques to confirm a candle pattern d. Using cycles to confirm the existence of a pattern Which tools could you use in Answer c. RSI and MACD candle pattern filtering? Reference: Dahlquist, Julie R., and Charles D. a. Cycles Kirkpatrick. Technical Analysis: The Complete b. Point and Figure chart Resource for Financial Market Technicians. c. RSI and MACD Chapter 17 d. Dow Theory CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 25/50 10/11/21, 4:29 PM The analysis of cycles CMT Level 1 - Sample Questions Flashcards | Quizlet Answer b. An indication of time duration of a trend provides Reference: Pring, Martin J. Technical Analysis a. An objective determination Explained. Chapter 21 of trend reversal b. An indication of time duration of a trend c. Relative strength of related price indices d. An approximation of price support For a futures contract, daily Answer c. The number of contracts traded during volume represents the day a. The dollar volume of the Reference: Dahlquist, Julie R., and Charles D. contracts traded Kirkpatrick. Technical Analysis: The Complete b. The cumulative price Resource for Financial Market Technicians. change for the day Chapter 18 c. The number of contracts traded during the day d. The open interest at the end of the day Flow of fund analysis relies in Answer: d. On measuring the cash position of part different investor groups a. On the sentiment of Reference: Dahlquist, Julie R., and Charles D. investment advisory services Kirkpatrick. Technical Analysis: The Complete b. On monthly price Resource for Financial Market Technicians. movements of the Dow Jones Chapter 10 Industrial Average c. On market volume statistics d. On measuring the cash position of different investor groups CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 26/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet A momentum index measures Answer c. The rate of change of prices a. Investor sentiment Reference: Dahlquist, Julie R., and Charles D. b. Investor psychology Kirkpatrick. Technical Analysis: The Complete c. The rate of change of Resource for Financial Market Technicians. prices Chapter 18 d. Absolute volume level The simple moving average Answer a. Gives equal weight to each periods price a. Gives equal weight to each periods price Reference: Dahlquist, Julie R., and Charles D. b. Gives greater weight to the Kirkpatrick. Technical Analysis: The Complete more recent price Resource for Financial Market Technicians. c. Assigns greater weight to Chapter 14 more recent data and includes all of the data in the life of the instrument d. None of the above The objective of the Dow Answer c. The primary direction of the stock Theory is to determine market a. Changes in market Reference: Dahlquist, Julie R., and Charles D. psychology Kirkpatrick. Technical Analysis: The Complete b. The likelihood of volume Resource for Financial Market Technicians. reversals Chapter 6 c. The primary direction of the stock market d. Timing of market bottoms CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 27/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet Oscillators are normally used Answer: a. Identify overbought or oversold market to conditions a. Identify overbought or Reference: Dahlquist, Julie R., and Charles D. oversold market conditions Kirkpatrick. Technical Analysis: The Complete b. Identify price/volume Resource for Financial Market Technicians. divergences Chapters 8 and 18 c. Identify Elliott Wave cycles d. Gauge differentials between buyers and sellers Relative strength analysis, as Answer c. Changes in security prices in relation to applied in equity analysis other security prices, group price indices or relates market action a. Volume changes to price Reference: Dahlquist, Julie R., and Charles D. changes Kirkpatrick. Technical Analysis: The Complete b. Unsophisticated investor Resource for Financial Market Technicians. behavior to price cycles Chapter 18 c. Changes in security prices in relation to other security prices, group price indices or market action d. Rate of price change of 4, 13 and 42 weeks CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 28/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet The resistance level of a price Answer b. The level over the market where selling trend refers to pressure is sufficiently strong to overcome buying pressure a. The level under the market and a price where buying interest is advance is expected to be turned back sufficiently strong to overcome selling pressure Reference: Dahlquist, Julie R., and Charles D. b. The level over the market Kirkpatrick. Technical Analysis: The Complete where selling pressure is Resource for Financial Market Technicians. sufficiently strong to Chapter 12 overcome buying pressure and a price advance is expected to be turned back c. The boundaries of the trading range of the trend d. The target price indicated by the count To measure an overbought or Answer d. Look for price and volume divergences oversold market level, a technical analyst would Reference: Dahlquist, Julie R., and Charles D. normally Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. a. Look for moving average Chapter 18 crossovers b. Look for a series of exhaustion gaps c. Use one or more price oscillators d. Look for price and volume divergences CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 29/50 10/11/21, 4:29 PM Accumulation normally CMT Level 1 - Sample Questions Flashcards | Quizlet Answer a. Near a market bottom occurs Reference: Pring, Martin J. Technical Analysis a. Near a market bottom Explained. Chapter 5 b. Near a market top c. In declining markets d. After a completed trading range The Kondratieff cycle extends Answer d. 54 years for a period of about Reference: Dahlquist, Julie R., and Charles D. a. 13 weeks Kirkpatrick. Technical Analysis: The Complete b. 13 years Resource for Financial Market Technicians. c. 54 weeks Chapter 19 d. 54 years The Public/Specialist Short Answer: a. Shows the difference between Sales Ratio is used as a tool sophisticated money and unsophisticated money that Reference: Pring, Martin J. Technical Analysis a. Shows the difference Explained. Chapter 26 between sophisticated money and unsophisticated money b. Shows the growth in money flow produced by NYSE specialists c. Measures contrary opinion d. Has become obsolete due to derivative product trading CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 30/50 10/11/21, 4:29 PM Blow-offs are identified CMT Level 1 - Sample Questions Flashcards | Quizlet Answer b. By observing a sharp rally in prices after a long advance accompanied by a sharp increase a. Near market bottoms in trading activity b. By observing a sharp rally in prices after a long advance Reference: Edwards, Robert D. and Magee, John. accompanied by a sharp Technical Analysis of Stock Trends, 9th increase in trading activity Edition.Chapter 10.1 c. By observing a sudden sharp drop in prices after a long decline accompanied by heavy trading activity d. Using techniques of cycle analysis A selling climax Answer b. Typically occurs at a market bottom a. Typically occurs at a market Reference: Edwards, Robert D. and Magee, John. top Technical Analysis of Stock Trends, 9th b. Typically occurs at a market Edition.Chapter 10. bottom c. Is accompanied by average to low volume d. Indicates new shorts getting trapped at the bottom A breakaway gap usually Answer: b. Signals the beginning of an important price move a. Occurs during the accumulation phase of a Reference: Edwards, Robert D. and Magee, John. market cycle Technical Analysis of Stock Trends, 9th b. Signals the beginning of an Edition.Chapter 12 important price move c. Provides a major divergence signal d. Occurs at the end of an important price move CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 31/50 10/11/21, 4:29 PM Price cycles are normally CMT Level 1 - Sample Questions Flashcards | Quizlet Answer d. All of the above measured by Reference: Pring, Martin J. Technical Analysis a. Their amplitude Explained. Chapter 21 b. Their period c. Their phase d. All of the above During a consolidation, price Answer b. Moves within well defined neutral action normally boundaries on moderate or less than moderate volume a. Reverses decisively in one direction on heavy volume Reference: Edwards, Robert D. and Magee, John. b. Moves within well defined Technical Analysis of Stock Trends, 9th Edition. neutral boundaries on Chapters 8 & 9 moderate or less than moderate volume c. Retraces one third of its previous price movement d. Diverges from volume Contrary opinion is usually Answer c. Considered to be a gauge of investor psychology a. Ignored b. Measured by observing Reference: Pring, Martin J. Technical Analysis price cycles and volume Explained. Chapter 26 patterns c. Considered to be a gauge of investor psychology d. A bullish indicator CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 32/50 10/11/21, 4:29 PM Moving average crossovers CMT Level 1 - Sample Questions Flashcards | Quizlet Answer a. Buy and sell signals can be used to indicate Reference: Pring, Martin J. Technical Analysis a. Buy and sell signals Explained. Chapter 9 b. Positive relative strength c. Negative volume d. Trend divergence Which of the following can be Answer d. All of the above considered a sentiment indicator Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Specialist Short Sales Ratio Resource for Financial Market Technicians Chapter b. Mutual Fund Cash/Asset 12 Ratio c. Odd Lot Purchase/Sales Ratio d. All of the above Speed resistance lines Answer d. All of the above a. Divide a trend in thirds Reference: Edwards, Robert D. and Magee, John. b. Measure the rate of ascent Technical Analysis of Stock Trends, 9th Edition. or descent of a trend Chapter 12 c. Are used to measure percentage retracements d. All of the above CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 33/50 10/11/21, 4:29 PM An exhaustion gap is CMT Level 1 - Sample Questions Flashcards | Quizlet Answer c. Near the end of a major price move observed Reference: Dahlquist, Julie R., and Charles D. a. In the beginning stage of a Kirkpatrick. Technical Analysis: The Complete bear market Resource for Financial Market Technicians. b. After prices have moved Chapter 11 sideways for an extended period of time c. Near the end of a major price move d. With light trading volume On a daily bar chart Answer d. All of the above a. Each day's price action is Reference: Pring, Martin J. Technical Analysis represented by a vertical bar; Explained. Chapter 10 the daily high, low and close are plotted b. Prices are plotted vertically, time horizontally c. The price scale may be either arithmetic or logarithmic d. All of the above An appropriate time interval Answer c. Monthly selection for a bar chart which is designed to show very Reference: Dahlquist, Julie R., and Charles D. long-term trends would be Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. a. Daily Chapter 23 b. Weekly c. Monthly d. Annually CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 34/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet Risk can be defined as: Answer d. All of the above a. Variability of returns Reference: du Plessis, Jeremy. The Definitive Guide b. Amount of loss per trade to Point and Figure. Chapter 2 c. Beta d. All of the above A point & figure chart Answer a. A new plot on a point and figure chart is DIFFERS from a bar chart as made only when the price changes by a given amount a. A new plot on a point and figure chart is made only Reference: du Plessis, Jeremy. The Definitive Guide when the price changes by a to Point and Figure. Chapter 2 given amount b. Time intervals are clearly shown in a point and figure chart c. Point and figure charts are only concerned with measuring price momentum d. A new plot on a bar chart is made only when the price changes by a given amount CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 35/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet In constructing a point and Answer b. The price has moved by equal to or figure chart, a new box is more than the specified box size added ONLY when Reference: du Plessis, Jeremy. The Definitive Guide a. The price has moved by to Point and Figure. Chapter 2 less than the specified box size b. The price has moved by equal to or more than the specified box size c. The volume confirms the price movement d. The price has moved to a new high As the price unit of a reversal Answer c. The detail of price movement on a point and figure chart is graphically displayed is increased decreased Reference: Dahlquist, Julie R., and Charles D. a. Time analysis becomes Kirkpatrick. Technical Analysis: The Complete more critical for interpretation Resource for Financial Market Technicians. b. The detail of price Chapter 17 movement graphically displayed is decreased c. The detail of price movement graphically displayed is increased d. The possibility of whipsaws decreases CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 36/50 10/11/21, 4:29 PM The body of the candlestick CMT Level 1 - Sample Questions Flashcards | Quizlet Answer d. The current session's open and close line displays the relationship between: Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. The current session's high Resource for Financial Market Technicians. and low Chapter 17 b. The current session's close and the prior session's close c. The current session's open and high d. The current session's open and close The basic concept behind the Answer d. A trend in motion will remain in motion use of a trendline is that until it reverses a. Price and volume tend to Reference: Dahlquist, Julie R., and Charles D. confirm each other Kirkpatrick. Technical Analysis: The Complete b. Prices rise and fall in Resource for Financial Market Technicians. cyclical patterns Chapter 2 c. Prices follow a natural rhythm d. A trend in motion will remain in motion until it reverses CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 37/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet Technical analysts generally Answer b. A price close beyond the trendline is believe more significant than an intra-day penetration a. That trendline analysis Reference: Dahlquist, Julie R., and Charles D. cannot be applied to point Kirkpatrick. Technical Analysis: The Complete and figure charts Resource for Financial Market Technicians. b. A price close beyond the Chapter 2 trendline is more significant than an intra-day penetration c. Trendlines are useful for validation of price gaps d. Price whipsaws can be avoided using trendlines In a head and shoulders Answer c. Decreases with each successive peak pattern, volume usually Reference: Dahlquist, Julie R., and Charles D. a. Is greatest in the middle leg Kirkpatrick. Technical Analysis: The Complete b. Increases with each Resource for Financial Market Technicians. successive peak Chapter 15 c. Decreases with each successive peak d. Is constant throughout the pattern A simple moving average is Answer c. Equal weight is given to each point often criticized because included in the calculation a. The most recent events are Reference: Pring, Martin J. Technical Analysis given extra weight Explained. Chapter 9 b. The entire price time series is used in its calculation c. Equal weight is given to each point included in the calculation d. It is difficult to calculate CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 38/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet An exponentially smoothed Answer b. Gives more weight to more recent moving average observations a. Excludes older price points Reference: Pring, Martin J. Technical Analysis in the calculation Explained. Chapter 9 b. Gives more weight to more recent observations c. Cannot be plotted on a bar chart d. None of the above Oscillators are used to alert Answer d. Overbought or oversold price the analyst to conditions a. Volume divergences Reference: Dahlquist, Julie R., and Charles D. b. Continuation patterns Kirkpatrick. Technical Analysis: The Complete c. Extended rallies Resource for Financial Market Technicians. d. Overbought or oversold Chapters 8 and 18 price conditions All the following are Answer a. Advance/decline line momentum oscillators EXCEPT Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Advance/decline line Resource for Financial Market Technicians. b. Relative Strength Index Chapter 18 (RSI) c. Stochastics d. Moving Average Convergence/Divergence (MACD) CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 39/50 10/11/21, 4:29 PM Most oscillators are CMT Level 1 - Sample Questions Flashcards | Quizlet Answer a. So that the mid-point goes through zero constructed Reference: Dahlquist, Julie R., and Charles D. a. So that the mid-point goes Kirkpatrick. Technical Analysis: The Complete through zero Resource for Financial Market Technicians. b. On a semi-logscale to Chapter 18 highlight momentum c. So that all points are positive in value d. Without an upper boundary Oscillators are MOST helpful Answer d. Non-trending markets where prices to gauge price behavior in fluctuate in a well defined trading range a. Sharply rising markets Reference: Dahlquist, Julie R., and Charles D. b. Sharply falling markets Kirkpatrick. Technical Analysis: The Complete c. Sharply rising and sharply Resource for Financial Market Technicians. falling markets Chapter 18 d. Non-trending markets where prices fluctuate in a well defined trading range Oscillators are MOST valuable Answer c. Their value reaches an extreme reading when near the upper or lower end of their boundaries a. They are confirmed by Reference: Dahlquist, Julie R., and Charles D. relative strength measures Kirkpatrick. Technical Analysis: The Complete b. They are accelerating in Resource for Financial Market Technicians. trend Chapter 18 c. Their value reaches an extreme reading near the upper or lower end of their boundaries d. Evaluated using multiple moving averages CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 40/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet A typical momentum index is Answer a. Plotting the change in price between constructed by the beginning and end of a time interval a. Plotting the change in price Reference: Dahlquist, Julie R., and Charles D. between the beginning and Kirkpatrick. Technical Analysis: The Complete end of a time interval Resource for Financial Market Technicians. b. Plotting the difference in Chapter 18 volume between the daily high price and the daily low price c. Plotting cumulative price between two points d. Connecting the boxes on a point and figure chart Violated support levels Answer c. Become resistance levels on price typically bounces a. Become support levels as Reference: Dahlquist, Julie R., and Charles D. prices fall lower Kirkpatrick. Technical Analysis: The Complete b. Are associated with Resource for Financial Market Technicians. declining price projections Chapter 12 c. Become resistance levels on price bounces d. Indicate an imminent price reversal As with trendlines, speed Answer d. Reverse roles once they are broken resistance lines Reference: Dahlquist, Julie R., and Charles D. a. Can be used in conjunction Kirkpatrick. Technical Analysis: The Complete with sentiment indicators Resource for Financial Market Technicians. b. Indicate the potential for Chapter 12 immediate price reversals c. Must be confirmed with volume d. Reverse roles once they are brokenLevel 1 - Sample Questions CMT https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 41/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet Which pairs are not similar? Answer c. MACD = ROC a. Stochastics = Williams Reference: Dahlquist, Julie R., and Charles D. b. RSI = MACD Kirkpatrick. Technical Analysis: The Complete c. MACD = ROC Resource for Financial Market Technicians. d. None are similar Chapter 18 A rising relative strength line Answer c. That the stock is performing better than for a stock in a falling market the market indicates Reference: Dahlquist, Julie R., and Charles D. a. That price and volume are Kirkpatrick. Technical Analysis: The Complete diverging Resource for Financial Market Technicians. b. That the stock is performing Chapter 21 worse than the market c. That the stock is performing better than the market d. That the stock's price is rising despite the falling market Which set of indicators would Answer b. Oscillators be MOST helpful in analyzing trading range markets? Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Moving averages Resource for Financial Market Technicians. b. Oscillators Chapter 18 c. Cycles d. Elliott Wave CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 42/50 10/11/21, 4:29 PM The four year cycle, also CMT Level 1 - Sample Questions Flashcards | Quizlet Answer a. Election and pre-election known as the Presidential Cycle, realizes the best Reference: Pring, Martin J. Technical Analysis returns in the stock market to Explained. Chapter 21 be a. Election and pre-election b. Mid-term and election c. Pre-election and post election d. Post election and mid-term Which of the following Answer d. All of the above indicators are used to measure market breadth? Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Cumulative breadth line Resource for Financial Market Technicians. b. Advance/decline ratio Chapter 8 c. McClellan oscillator d. All of the above Which of the following is NOT Answer c. The consensus is always wrong an underlying assumption of technical analysis? Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Prices move in trends Resource for Financial Market Technicians. b. Price discounts everything Chapter 2 c. The consensus is always wrong d. Supply and demand determines price CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 43/50 10/11/21, 4:29 PM Which of the following would CMT Level 1 - Sample Questions Flashcards | Quizlet Answer: c. Relative strength lines NOT be considered a means of identifying a trend? Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Regression lines Resource for Financial Market Technicians. b. Trendlines Chapter 12 c. Relative strength lines d. Moving averages When a stock breaks through Answer: d. Any of the above the bottom of a down sloping standard deviation channel Reference: Dahlquist, Julie R., and Charles D. (around a regression line) Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. a. The stock is oversold Chapter 12 b. An acceleration of the trend may be about to occur c. It is at the limits of normal distribution d. Any of the above CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 44/50 10/11/21, 4:29 PM Moving averages tend to CMT Level 1 - Sample Questions Flashcards | Quizlet Answer a. Using a weighted moving average change direction well after a peak or trough in price and Reference: Dahlquist, Julie R., and Charles D. therefore are considered Kirkpatrick. Technical Analysis: The Complete "late" in changing direction. Resource for Financial Market Technicians. Which of the following is Chapter 14 generally considered the MOST effective way to offset this tendency to lag? a. Using a weighted moving average b. Using an unweighted moving average c. Using moving average crossovers d. None of the above A descending triangle that Answer b. Continuation pattern forms in a downtrend would probably be considered a Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Reversal pattern Resource for Financial Market Technicians. b. Continuation pattern Chapter 15 c. Either a or b d. Probably wouldn't be useful in forecasting the future direction of the trend CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 45/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet Which of the following is NOT Answer b. A rally that occurs on rising volume true about volume? points to a probable trend reversal a. A rally that develops on Reference: Pring, Martin J. Technical Analysis declining volume is suspect Explained. Chapters 22-23 b. A rally that occurs on rising volume points to a probable trend reversal c. Both price and volume can fall off sharply after a buying climax d. A downside break of a moving average or trendline should occur on heavy volume to qualify as a bearish signal Which of the following is Answer a. Triangles LEAST reliable? Reference: Pring, Martin J. Technical Analysis a. Triangles Explained. Chapter 5 b. Wedges c. Broadening Formations d. Pennants Which of the following is Answer b. It is usually a continuation pattern LEAST true of a doji pattern? Reference: Pring, Martin J. Technical Analysis a. It represents indecision Explained. Chapter 13 b. It is usually a continuation pattern c. It is usually a reversal pattern d. The opening and closing prices are at identical levels CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 46/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet The January Effect is: Answer d. B and C a. As the S&P goes in January, Reference: Dahlquist, Julie R., and Charles D. so goes the year Kirkpatrick. Technical Analysis: The Complete b. When small cap stocks are Resource for Financial Market Technicians. more likely to outperform the Chapter 9 market c. Has not worked well in recent years d. B and C In a 10-day rate of change Answer a. The ratio would be greater than zero indicator, if the latest (more recent) price is higher than Reference: Dahlquist, Julie R., and Charles D. the price 10 days ago Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. a. The ratio would be greater Chapter 18 than zero b. The ratio would be less than zero c. The ratio would be equal to zero d. The ratio would hold at a constant until the market changed trend CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 47/50 10/11/21, 4:29 PM CMT Level 1 - Sample Questions Flashcards | Quizlet An extreme overbought Answer b. Indicates that the rally is strong and will reading on a momentum probably carry further indicator in the early stages of a rally Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete a. Shows that the market is Resource for Financial Market Technicians. ready to correct Chapter 18 b. Indicates that the rally is strong and will probably carry further c. Is a clear indication that the pace of the rally is about to slow down d. Is a clear indication that the pace of the rally is about to accelerate Which statement is true of an Answer d. b and c uptrending market? Reference: Dahlquist, Julie R., and Charles D. a. Momentum indicators will Kirkpatrick. Technical Analysis: The Complete tend to hit greater oversold Resource for Financial Market Technicians. extremes Chapter 8 b. Momentum indicators will tend to stay overbought longer c. Momentum indicators will tend to hit greater overbought extremes than in a downtrending market d. b and c CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 48/50 10/11/21, 4:29 PM Which would normally be CMT Level 1 - Sample Questions Flashcards | Quizlet Answer d. Put/call ratios considered a sentiment indicator that is MOST useful Reference: Pring, Martin J. Technical Analysis to traders? Explained. Chapter 26 a. Corporate buy backs b. Price/earnings ratios c. Insider buying d. Put/call ratios Which type of chart is usually Answer c. Point and figure charts considered BEST suited for establishing price targets Reference: du Plessis, Jeremy. The Definitive Guide based on a horizontal to Point and Figure. Chapters 1-2 measurement? a. Line charts b. Daily bar charts c. Point and figure charts d. Candlestick charts Contrary opinion is a useful Answer d. It is at turning points where people are investment tool because wrong a. The "little guy" is always Reference: Pring, Martin J. Technical Analysis wrong Explained. Chapter 26 b. Traders are often most bearish near market tops c. Institutional investors have access to better information d. It is at turning points where people are wrong CMT Level 1 - Sample Questions https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 49/50 10/11/21, 4:29 PM The longest-term trend in the CMT Level 1 - Sample Questions Flashcards | Quizlet Answer c. Secular market is the Reference: Dahlquist, Julie R., and Charles D. a. Primary Kirkpatrick. Technical Analysis: The Complete b. Cyclical Resource for Financial Market Technicians Chapter c. Secular 21 d. None of the above https://quizlet.com/24959673/cmt-level-1-sample-questions-flash-cards/ 50/50
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