CMT TESTS COMPILATION BUNDLE

What are the basic tenets of Dow Theory correct answer: 1.) The averages discount everything 2.) The market has three trends 3.) Major trends have three phases 4.) The averages must confirme each other 5.) Volume must confirm trend 6.) A trend is in effect until it gives definitive signals tha...

Cycles are GENERALLY measured a. High to low b. Low to low c. High to high d. Either b or c correct answer: Answer: b. Low to low Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 19. This cycle...

US Dollar Index correct answer: The US Dollar Index (USDX, DXY) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners' currencies. It is a weighted geometric mean of the dollar's value rela...

When analyzing long term price movements, it could be helpful to use which type of chart? a. Candle chart b. Logarithmic chart c. Bar chart d. Point and figure chart correct answer: Answer: b. Logarithmic chart Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis...

Charts correct answer: Representation of human behavior Gann's Grand Rush correct answer: Final move before a collapse or sell off before a rally Importing correct answer: Selling/Weaker Dollar Exporting correct answer: Buying/Strong Dollar Consumer Confidence correct answer: How p...

1 - Define what is meant by a trend in technical analysis. correct answer: Uptrend = price reaches higher peaks and troughs; downtrend = prices reach lower peaks and troughs; flat trend = price within a range without significant downward movement. 1 - Explain why determining the trend is importa...

Cycles are GENERALLY measured a. High to low b. Low to low c. High to high d. Either b or c correct answer: Answer: b. Low to low Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 19. This cycle...

A strong open followed by strong close will allow trader to do what? correct answer: Buy on a pullback after next open. A weak close after strong open will allow trader to do what? correct answer: Sell short near following open Highs and lows occur where during the day? correct answer: Most...

Simple Moving Average A simple average of the past X number of bars Weighted Moving Average A moving average where the most recent price, in the past X number of bars, is multiplied by X. The next previous bar by X-1, etc. Exponential Moving Average A moving average that applies weights to the ...

Cycles are most likely measured a. low to low. b. low to high. c. high to low. d. high to high. correct answer: a. (low to low.) Reference: Pring, 2002, Technical Analysis Explained, 4th Edition, Chapter 21, p. 391 Which of the following is the most important aspect of a cycle in stu...

Which of the following is a component of the Code of Ethics? CFA Institute members shall: a) use particular care in determining applicable fiduciary duty. b) use reasonable care and exercise independent professional judgment. c) maintain and improve the competence of other investment professional...

John Welsh, CFA, CMT, is the founder of YMR Research, an investment management firm that specializes in short selling. Welsh identifies stocks that appear over-extended on price charts after large price increases. Additionally, Welsh also buys research from third-party firms that provide timely upda...

Abandoned Baby correct answer: A rare reversal pattern characterized by a gap followed by a Doji, which is then followed by another gap in the opposite direction. The shadows on the Doji must completely gap below or above the shadows of the first and third day. Above the Market correct answer: ...

Cycles are most likely measured a. low to low. b. low to high. c. high to low. d. high to high. correct answer: a. (low to low.) Reference: Pring, 2002, Technical Analysis Explained, 4th Edition, Chapter 21, p. 391 Which of the following is the most important aspect of a cycle in stu...