CMT Practice Questions and Answers – Chartered Market Technician Level
1 2026/2027 | A+ Grade Financial Markets Study Guide
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 - (answer)Answer: b. Logarithmic chart
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 11.
Which of the following would MOST likely be a continuation pattern?
a. Engulfing pattern
b. Head and shoulders
c. Double bottom
d. Flag - (answer)Answer: d. Flag
Reference: Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition. Chapter
11.
Which of the following would NOT be considered a support level?
a. Previous high
b. Previous low
c. Trading range
d. All the above are considered to be support levels - (answer)Answer: d. All the above are considered to
be support levels
,CMT Practice Questions and Answers – Chartered Market Technician Level
1 2026/2027 | A+ Grade Financial Markets Study Guide
Reference: Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition. Chapter
13.
According to Robert Rhea's hypotheses:
I. The primary trend is inviolate
II. The averages discount everything
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 - (answer)Answer: c. I, II, and III
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 6.
For a breakout or breakdown from a triangle to be considered valid it should occur NO MORE than
_______ of the distance to the apex from the beginning of the pattern?
a. One-half
b. Two-thirds
c. Three-quarters
d. Five-sixths - (answer)Answer: c. Three-quarters
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 15.
,CMT Practice Questions and Answers – Chartered Market Technician Level
1 2026/2027 | A+ Grade Financial Markets Study Guide
What is indicated when Bollinger Bands narrow?
a. A stock is ready for a rally
b. A stock is ready for a decline
c. A stock's volatility has increased
d. A stock's volatility has decreased - (answer)Answer: d. A stock's volatility has decreased
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 14.
In the Dow Theory, the MOST important price is the
a. Open
b. High
c. Low
d. Close - (answer)Answer: d. Close
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 6.
Which is/are considered important in determining the validity of a trendline break?
a. Time
b. Price
c. Volume
d. All of the above - (answer)Answer: d. All the above
, CMT Practice Questions and Answers – Chartered Market Technician Level
1 2026/2027 | A+ Grade Financial Markets Study Guide
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 13.
Which BEST characterizes continuation patterns?
a. There is sideways price action
b. They take a long time to form
c. They usually represent long-term patterns
d. They signal the start of a new trend - (answer)Answer: a. There is sideways price action
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 17.
Which is NOT true of a buying climax?
a. Prices fall sharply at first
b. Volume is very heavy
c. The close is near the low end of the daily range
d. Prices initially rise sharply - (answer)Answer: a. Prices fall sharply at first
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 15.
In order for a Dow Theory sell signal to be confirmed
a. The Dow Jones Industrials (DJI) and the Dow Transports (DJT) must peak 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
1 2026/2027 | A+ Grade Financial Markets Study Guide
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 - (answer)Answer: b. Logarithmic chart
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 11.
Which of the following would MOST likely be a continuation pattern?
a. Engulfing pattern
b. Head and shoulders
c. Double bottom
d. Flag - (answer)Answer: d. Flag
Reference: Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition. Chapter
11.
Which of the following would NOT be considered a support level?
a. Previous high
b. Previous low
c. Trading range
d. All the above are considered to be support levels - (answer)Answer: d. All the above are considered to
be support levels
,CMT Practice Questions and Answers – Chartered Market Technician Level
1 2026/2027 | A+ Grade Financial Markets Study Guide
Reference: Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition. Chapter
13.
According to Robert Rhea's hypotheses:
I. The primary trend is inviolate
II. The averages discount everything
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 - (answer)Answer: c. I, II, and III
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 6.
For a breakout or breakdown from a triangle to be considered valid it should occur NO MORE than
_______ of the distance to the apex from the beginning of the pattern?
a. One-half
b. Two-thirds
c. Three-quarters
d. Five-sixths - (answer)Answer: c. Three-quarters
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 15.
,CMT Practice Questions and Answers – Chartered Market Technician Level
1 2026/2027 | A+ Grade Financial Markets Study Guide
What is indicated when Bollinger Bands narrow?
a. A stock is ready for a rally
b. A stock is ready for a decline
c. A stock's volatility has increased
d. A stock's volatility has decreased - (answer)Answer: d. A stock's volatility has decreased
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 14.
In the Dow Theory, the MOST important price is the
a. Open
b. High
c. Low
d. Close - (answer)Answer: d. Close
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 6.
Which is/are considered important in determining the validity of a trendline break?
a. Time
b. Price
c. Volume
d. All of the above - (answer)Answer: d. All the above
, CMT Practice Questions and Answers – Chartered Market Technician Level
1 2026/2027 | A+ Grade Financial Markets Study Guide
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 13.
Which BEST characterizes continuation patterns?
a. There is sideways price action
b. They take a long time to form
c. They usually represent long-term patterns
d. They signal the start of a new trend - (answer)Answer: a. There is sideways price action
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 17.
Which is NOT true of a buying climax?
a. Prices fall sharply at first
b. Volume is very heavy
c. The close is near the low end of the daily range
d. Prices initially rise sharply - (answer)Answer: a. Prices fall sharply at first
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for
Financial Market Technicians. Chapter 15.
In order for a Dow Theory sell signal to be confirmed
a. The Dow Jones Industrials (DJI) and the Dow Transports (DJT) must peak 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
