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CMT Association CMT-Level-I (CMT Level I) Certification Exam is a globally recognized certification offered by the CMT Association. CMT-Level-I exam is designed to test the knowledge and skills of individuals in the field of technical analysis. It covers a wide range of topics including chart patterns, indicators, trend analysis, and risk management. CMT Level 1 Exam certification is highly respected in the financial industry and is widely recognized by employers around the world.
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The CMT-Level-I (CMT Level I) exam is the first step in the CMT program. It is designed to test candidates' knowledge of basic technical analysis concepts and their ability to apply them in practical situations. CMT-Level-I exam consists of 132 multiple-choice questions and is administered over a four-hour period. Candidates who pass the CMT Level I exam are eligible to take the CMT Level II exam.
The CMT-Level-I exam is administered by the CMT Association, a not-for-profit organization that promotes the education and development of technical analysis. The association was founded in 1973 and has since grown to become the leading global organization for technical analysis professionals. The CMT-Level-I Exam is the first level of the CMT certification program, which also includes CMT-Level-II and CMT-Level-III exams.
CMT Association CMT Level 1 Exam Sample Questions (Q394-Q399):
NEW QUESTION # 394
Which is NOT true of a buying climax?
- A. Prices fall sharply at first
- B. The close is near the low end of the daily range
- C. Prices initially rise sharply
- D. Volume is very heavy
Answer: A
Explanation:
Detailed Explanation:
A buying climax occurs at the top of an uptrend. It is characterized by a sharp rise in prices (not a fall) accompanied by heavy volume and often positive news. The reversal happens when the price closes near the low of the day despite the high volume, indicating sellers have overwhelmed buyers. Therefore, "Prices fall sharply at first" is the incorrect statement.
NEW QUESTION # 395
O67n a daily ba68r chart:
- A. Each day's price action is represented by a vertical bar; the daily high, low and close are plotted
- B. The price scale may be either arithmetic or logarithmic
- C. All of the above
- D. Prices are plotted vertically, time horizontally
Answer: C
Explanation:
Detailed Explanation:
A standard bar chart displays the High, Low, and Close (and often Open) as a vertical line (A). Price is on the Y-axis and time on the X-axis (B). The scale can be set to either arithmetic (linear) or logarithmic (percentage) (C). Thus, all statements are true.
NEW QUESTION # 396
Reuters CCI is a measure of:
- A. Recession
- B. Inflation
- C. Stagflation
- D. Deflation
Answer: B
Explanation:
Detailed Explanation:
The Reuters CCI (Continuous Commodity Index) tracks a basket of commodities. Since commodity prices are a primary driver of input costs, the index is widely viewed as a leading indicator or measure of inflationary pressures.
NEW QUESTION # 397
Which moving average(s) assign GREATER weight to the most recent data?
- A. Weighted
- B. Both B and C
- C. Simple
- D. Exponential
Answer: B
Explanation:
Detailed Explanation:
* Simple MA: Equal weight.
* Weighted MA: Assigns linear incremental weight to recent data.
* Exponential MA: Assigns exponential weight to recent data.
Both Weighted and Exponential moving averages are designed to reduce lag by emphasizing recent prices.
---
NEW QUESTION # 398
Which of the following is TRUE regarding contrary opinion as a technical analysis technique?
- A. Contrary opinion is more useful in deciding when to exit positions than as a timing tool
- B. As long as players still have money to invest their optimism will drive prices higher
- C. Contrarians trade against the consensus even when it is within a normal range
- D. Contrary opinion should be used as the sole decision source
Answer: B
Explanation:
Detailed Explanation:
Contrarianism is not about blindly betting against the crowd. As long as the crowd (bulls) still has cash ("firepower"), their buying will push prices higher. The crowd is only "wrong" at the extremes when they are fully invested and have no money left to buy, marking a top. Thus, optimism drives prices higher as long as money is available12.
NEW QUESTION # 399
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