Chartered Market Technician Level 1
UPDATED Exam Questions and
CORRECT Answers
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 relative to other select currencies:
Euro (EUR), 57.6% weight
Japanese yen (JPY) 13.6% weight
Pound sterling (GBP), 11.9% weight
Canadian dollar (CAD), 9.1% weight
Swedish krona (SEK), 4.2% weight
Swiss franc (CHF) 3.6% weight
The "Percentage of stocks above their 50-day MA" indicator is considered to be overbought,
when it crosses above: - CORRECT ANSWER- 75%
Runaway Gap - CORRECT ANSWER- A type of gap on a price chart that occurs during
strong bull or bear movements characterized by an abrupt change in price and appearing over
a range of prices. They are best decribed as gaps caused by an sudden increase/decrease in
interest for a stock
If the stock market reaches a new peak while the A/D line does not, it indicates that: -
CORRECT ANSWER- fewer stocks are participating and the rally may be near its end.
When a series of short candlesticks appears after a period of relatively long sessions, it
implies a: - CORRECT ANSWER- weakening momentum.
Gaps normally occur: - CORRECT ANSWER- between the close of the market on one day
and the open of the next day
, Which of the following types of moving averages drops off an old data point when a new one
is added? - CORRECT ANSWER- Simple Moving Average
MACD line is calculated by: - CORRECT ANSWER- subtracting the 26-day exponential
moving average from the 12-day exponential moving
average
Top-down analysis refers to an analysis of: - CORRECT ANSWER- the overall economic
and business condition
Government and companies raise money from investors in: - CORRECT ANSWER- primary
markets
Treasury inflation-protected securities (TIPS) are bonds whose _____ is adjusted as the
consumer price index fluctuates: - CORRECT ANSWER- principal
At least _______ touches of each trend line are required for a valid rectangle. - CORRECT
ANSWER- two
A symmetrical triangle should be longer than: - CORRECT ANSWER- three weeks
A complete Elliott wave cycle is made up of _____ waves - CORRECT ANSWER- 8
___ __ is a sideways, three-wave corrective pattern. - CORRECT ANSWER- Flat
Force Index is calculated by: - CORRECT ANSWER- subtracting the previous day's close
from the current day's close and multiplying by volume
Volume divergences occur when: - CORRECT ANSWER- a new high in an uptrend takes
place on declining volume
The primary use of a candlestick pattern is to: - CORRECT ANSWER- strengthen the
possibility of a reversal or continuation of a price trend
UPDATED Exam Questions and
CORRECT Answers
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 relative to other select currencies:
Euro (EUR), 57.6% weight
Japanese yen (JPY) 13.6% weight
Pound sterling (GBP), 11.9% weight
Canadian dollar (CAD), 9.1% weight
Swedish krona (SEK), 4.2% weight
Swiss franc (CHF) 3.6% weight
The "Percentage of stocks above their 50-day MA" indicator is considered to be overbought,
when it crosses above: - CORRECT ANSWER- 75%
Runaway Gap - CORRECT ANSWER- A type of gap on a price chart that occurs during
strong bull or bear movements characterized by an abrupt change in price and appearing over
a range of prices. They are best decribed as gaps caused by an sudden increase/decrease in
interest for a stock
If the stock market reaches a new peak while the A/D line does not, it indicates that: -
CORRECT ANSWER- fewer stocks are participating and the rally may be near its end.
When a series of short candlesticks appears after a period of relatively long sessions, it
implies a: - CORRECT ANSWER- weakening momentum.
Gaps normally occur: - CORRECT ANSWER- between the close of the market on one day
and the open of the next day
, Which of the following types of moving averages drops off an old data point when a new one
is added? - CORRECT ANSWER- Simple Moving Average
MACD line is calculated by: - CORRECT ANSWER- subtracting the 26-day exponential
moving average from the 12-day exponential moving
average
Top-down analysis refers to an analysis of: - CORRECT ANSWER- the overall economic
and business condition
Government and companies raise money from investors in: - CORRECT ANSWER- primary
markets
Treasury inflation-protected securities (TIPS) are bonds whose _____ is adjusted as the
consumer price index fluctuates: - CORRECT ANSWER- principal
At least _______ touches of each trend line are required for a valid rectangle. - CORRECT
ANSWER- two
A symmetrical triangle should be longer than: - CORRECT ANSWER- three weeks
A complete Elliott wave cycle is made up of _____ waves - CORRECT ANSWER- 8
___ __ is a sideways, three-wave corrective pattern. - CORRECT ANSWER- Flat
Force Index is calculated by: - CORRECT ANSWER- subtracting the previous day's close
from the current day's close and multiplying by volume
Volume divergences occur when: - CORRECT ANSWER- a new high in an uptrend takes
place on declining volume
The primary use of a candlestick pattern is to: - CORRECT ANSWER- strengthen the
possibility of a reversal or continuation of a price trend
