Free CMT Association CMT-Level-II Exam Questions

Become CMT Association Certified with updated CMT-Level-II exam questions and correct answers

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Total 179 Questions | Updated On: Apr 28, 2026

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Question 1

Which of the following is true of Bollinger Bands?

A : The bands are based on the moving averages of prices

B : The bands are based on moving averages of prices plus or minus a standard deviation factor

C : When price equals the upper band it is considered bullish

D : When prices are above the upper band they are considered to be in oversold territory

Answer: B

Question 2

According to the MTA Code of Ethics, what prohibitions MUST be adhered to after making a buy or sell recommendation?

A : Allow adequate time for clients to act on recommendations before the analyst acts on the recommendation

B : Analysts must give clients and their employer adequate time to trade, but the analyst-s family members are under no such restriction

C : Analysts may effect trades for their own account even if their employer has not had time to act on their recommendation

D : Insider trading activity is the subject of SEC regulations, therefore the MTA Code of Ethics is silent on this issue

Answer: A

Question 3

According to Charles Dow, what has been the main downfall of Wall Street investors?

A : Independent thinking

B : Failure to stay the course

C : Pride of opinion

D : Failure to abide by classic trading rules

Answer: C

Question 4

Why doesn't the doji candle have a real. body?

A : The doji is an abbreviated method of drawing candles

B : The open and close are the same

C : The high and low are the same

D : Buyers are stronger than sellers

Answer: B

Question 5

Which of the following point and figure trading techniques limits risk compared to more basic trading rules?

A : Buy or sell as soon as a new column is created on the chart

B : Close out your trade on the second reversal back in the direction of the original signal

C : Take small consistent profits, but allow large, windfall profitable positions to run

D : Buy or sell on pullbacks after initial trade signal

Answer: D

Page: 1 / 36

Total 179 Questions | Updated On: Apr 28, 2026

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