Free CMT Association CMT-Level-II Exam Questions

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

Page: 1 / 36

Total 179 Questions | Updated On: Jul 29, 2025

Add To Cart

Question 1

Which of the following are the three basic tenets of Elliott Wave Theory, in the CORRECT order of importance?

A : Price, momentum and volume

B : Price, pattern and volume

C : Waves, alternation and reversals

D : Pattern, ratio and time

Answer: D

Question 2

The Sharpe Ratio is defined as?

A : (expected return plus the risk free interest rate) divided by the standard deviation of returns

B : (expected return minus the risk free interest rate) divided by the standard deviation of returns

C : (expected return divided by the risk free interest rate) divided by the standard deviation of returns

D : (expected return times the risk free interest rate) divided by the standard deviation of returns

Answer: B

Question 3

Which of the following is NOT true in chart interpretation:

A : A price chart is a representation of human behavior

B : The goal is to find consistent, reliable and logical patterns

C : Chart patterns can be caused by commonly used trading techniques

D : The behavioral aspects of prices are irrational

Answer: D

Question 4

Which of the following are true of the concepts of divergence and confirmation in technical analysis

A : They are opposite concepts

B : Confirmation has a valid technical interpretation but in the case of divergence, no valid conclusion can be drawn

C : Confirmation indicates a likely change in trend since all technical indicators are in agreement

D : Divergence indicates continuation in trend since different technical indicators do not agree

Answer: A

Question 5

Which of the following is the BEST volume indicator for analysis of futures trading?

A : Open interest

B : Contract volume

C : Total volume

D : Breadth

Answer: C

Page: 1 / 36

Total 179 Questions | Updated On: Jul 29, 2025

Add To Cart