CFTe Certified Financial Technician Level
I Newest 2025- 2026 Updated Practice
Exam | 150 Actual Most Tested
Questions Collections & Verified
Detailed Answers | Tutor Verified
Success Exam) Graded A+
1. Which of the following best describes the primary purpose of technical
analysis?
A. To evaluate a company’s intrinsic value using financial statements
B. To forecast price movements based on historical market data
C. To determine macroeconomic policy effects on markets
D. To calculate the fair value of derivatives
Answer: B ✔
Technical analysis focuses on historical price and volume data to forecast future
market movements.
2. The Dow Theory primarily assumes that market trends:
A. Are random and unpredictable
B. Move in three distinct phases
C. Depend solely on earnings reports
D. Are driven only by institutional investors
,Answer: B ✔
The Dow Theory identifies three phases: accumulation, public participation, and
distribution.
3. Support in technical analysis refers to:
A. A price level where selling pressure is strong
B. A price level where buying interest emerges
C. The highest price in a trend
D. A moving average crossover
Answer: B ✔
Support is a demand zone where prices tend to stop falling.
4. Resistance is best defined as:
A. A level where buying interest increases
B. A level where selling pressure increases
C. The average price of an asset
D. A breakout confirmation signal
Answer: B ✔
Resistance is a supply zone where upward movement slows or reverses.
5. Which chart type is most commonly used in technical analysis?
A. Line chart
B. Pie chart
C. Candlestick chart
D. Bar graph only for volume
Answer: C ✔
Candlestick charts provide detailed open, high, low, and close (OHLC)
information.
, 6. A bullish trend is characterized by:
A. Lower highs and lower lows
B. Sideways movement
C. Higher highs and higher lows
D. Random price movement
Answer: C ✔
A bullish trend forms when price consistently makes higher highs and higher
lows.
7. Which indicator is considered a momentum oscillator?
A. Moving Average
B. RSI
C. Bollinger Bands
D. Fibonacci Retracement
Answer: B ✔
The Relative Strength Index (RSI) measures momentum and
overbought/oversold conditions.
8. RSI above 70 typically indicates:
A. Oversold market
B. Overbought market
C. Neutral trend
D. Strong support
Answer: B ✔
RSI above 70 signals a potentially overbought condition.
, 9. A moving average is primarily used to:
A. Predict earnings
B. Smooth price data
C. Measure volatility directly
D. Identify dividend yield
Answer: B ✔
Moving averages help smooth price fluctuations and identify trends.
10.A breakout occurs when price:
A. Moves within a range
B. Crosses a support or resistance level
C. Forms a doji candle
D. Hits moving average support only
Answer: B ✔
A breakout happens when price moves beyond a key level.
11.Which of the following is a leading indicator?
A. MACD
B. RSI
C. Moving Average
D. Lagging trendline
Answer: B ✔
RSI is a leading indicator, signaling potential reversals.
12.MACD is primarily used to identify:
A. Market volume
B. Trend direction and momentum
I Newest 2025- 2026 Updated Practice
Exam | 150 Actual Most Tested
Questions Collections & Verified
Detailed Answers | Tutor Verified
Success Exam) Graded A+
1. Which of the following best describes the primary purpose of technical
analysis?
A. To evaluate a company’s intrinsic value using financial statements
B. To forecast price movements based on historical market data
C. To determine macroeconomic policy effects on markets
D. To calculate the fair value of derivatives
Answer: B ✔
Technical analysis focuses on historical price and volume data to forecast future
market movements.
2. The Dow Theory primarily assumes that market trends:
A. Are random and unpredictable
B. Move in three distinct phases
C. Depend solely on earnings reports
D. Are driven only by institutional investors
,Answer: B ✔
The Dow Theory identifies three phases: accumulation, public participation, and
distribution.
3. Support in technical analysis refers to:
A. A price level where selling pressure is strong
B. A price level where buying interest emerges
C. The highest price in a trend
D. A moving average crossover
Answer: B ✔
Support is a demand zone where prices tend to stop falling.
4. Resistance is best defined as:
A. A level where buying interest increases
B. A level where selling pressure increases
C. The average price of an asset
D. A breakout confirmation signal
Answer: B ✔
Resistance is a supply zone where upward movement slows or reverses.
5. Which chart type is most commonly used in technical analysis?
A. Line chart
B. Pie chart
C. Candlestick chart
D. Bar graph only for volume
Answer: C ✔
Candlestick charts provide detailed open, high, low, and close (OHLC)
information.
, 6. A bullish trend is characterized by:
A. Lower highs and lower lows
B. Sideways movement
C. Higher highs and higher lows
D. Random price movement
Answer: C ✔
A bullish trend forms when price consistently makes higher highs and higher
lows.
7. Which indicator is considered a momentum oscillator?
A. Moving Average
B. RSI
C. Bollinger Bands
D. Fibonacci Retracement
Answer: B ✔
The Relative Strength Index (RSI) measures momentum and
overbought/oversold conditions.
8. RSI above 70 typically indicates:
A. Oversold market
B. Overbought market
C. Neutral trend
D. Strong support
Answer: B ✔
RSI above 70 signals a potentially overbought condition.
, 9. A moving average is primarily used to:
A. Predict earnings
B. Smooth price data
C. Measure volatility directly
D. Identify dividend yield
Answer: B ✔
Moving averages help smooth price fluctuations and identify trends.
10.A breakout occurs when price:
A. Moves within a range
B. Crosses a support or resistance level
C. Forms a doji candle
D. Hits moving average support only
Answer: B ✔
A breakout happens when price moves beyond a key level.
11.Which of the following is a leading indicator?
A. MACD
B. RSI
C. Moving Average
D. Lagging trendline
Answer: B ✔
RSI is a leading indicator, signaling potential reversals.
12.MACD is primarily used to identify:
A. Market volume
B. Trend direction and momentum
