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: Oct 24, 2026

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Question 1

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 2

Counterattack lines are formed when:

A : a doji breaks a moving average

B : a dumpling top fails with an abandoned baby pattern

C : when opposite colored candles have the same close

D : When same-colored candles have the same close

Answer: C

Question 3

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

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

The "Rising 3 Methods" candlestick pattern is: I. Bullish II. Bearish III. Long White Body followed by a series of smaller falling candles IV. Long Black Body followed by a series of smaller rising candles

A : I & III

B : I & IV

C : II & III

D : II & IV

Answer: A

Page: 1 / 36

Total 179 Questions | Updated On: Oct 24, 2026

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