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CMT Association CMT-Level-I Exam Syllabus Topics:

SectionObjectives
Topic 1: Advanced Techniques- Cross-asset Analysis
  • 1. Asset Correlation
  • 2. Intermarket Relationships
- Volatility Analysis
  • 1. Risk Measurement
  • 2. Volatility Indicators
- Systematic Trading
  • 1. Trading Systems
  • 2. Backtesting
- Statistical Analysis
  • 1. Probability Concepts
  • 2. Regression Analysis
- Principles of Risk Management
  • 1. Portfolio Risk Control
  • 2. Position Sizing
Topic 2: Classical Techniques- Chart Types and Construction
  • 1. Line Charts
  • 2. Candlestick Charts
- Chart Pattern Analysis
  • 1. Reversal Patterns
  • 2. Continuation Patterns
- Internal and External Technical Indicators
  • 1. Momentum Indicators
  • 2. Volume Indicators
- Cycles
  • 1. Market Cycles
  • 2. Seasonality
- Trend Analysis
  • 1. Trendlines and Channels
  • 2. Support and Resistance
Topic 3: Theory and History- Behavioral Finance
  • 1. Investor Psychology
  • 2. Market Sentiment
- Evolution of Technical Analysis
  • 1. History of Technical Analysis
  • 2. Market Theory Foundations
- Key Concepts in Technical Analysis and Market Analysis
  • 1. Market Trends
  • 2. Price Discounting Mechanism

CMT Association CMT Level 1 Sample Questions:

1. Which of the following is a TRUE statement according to Elliott Wave Theory?

A) Corrections take place in five wave patterns
B) A cycle is 3 waves
C) The two types of simple corrective processes are zigzags and flats
D) A trend divides into three waves in the direction of the next longer trend


2. Financial markets offer115 two choices for investment. These are:

A) Equity and Commodity
B) Debt and Equity
C) Futures and Options
D) Debt and Bonds


3. Which of the following is a CORRECT Point and Figure chart pattern interpretation?

A) Upside breakout above a bullish resistance line generates a sell signal
B) Downside breakout below a bearish support line generates a buy signal
C) Downside breakout of a bearish triangle generates a sell signal
D) Upside breakout above an ascending triple top generates a sell signal


4. Which of the following is TRUE regarding moving averages?

A) Oscillators usually provide more valid trade signals than moving averages
B) Moving averages are more likely to provide the most valid trade signals in trending markets
C) Moving averages usually provide more valid trade signals than oscillators
D) Moving averages lead price action


5. Which of the following is an INCORRECT interpretation of the put-call ratio?

A) When call volume exceeds put volume, this has bullish future implications for the market
B) A very high ratio indicates an oversold market
C) When options traders are bullish, call volume exceeds put volume
D) A low ratio is considered a warning of an overbought market


Solutions:

Question # 1
Answer: C
Question # 2
Answer: B
Question # 3
Answer: C
Question # 4
Answer: B
Question # 5
Answer: A

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