[Apr-2026] CMT Program CMT-Level-I Exam Practice Dumps
2026 CMT-Level-I Premium Files Test pdf - Free Dumps Collection
NEW QUESTION # 241
What would be the minimum price objective for a head and shoulders pattern with a neckline at 63, top of the first shoulder at 72, top of the head at 96 and top of the second shoulder at 78?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: B
Explanation:
Detailed Explanation:
* Calculate Height:Top of Head (96) minus Neckline (63) = 33 points.
* Project Target: Subtract the height from the breakdown point (Neckline).
$63 - 33 = 30$.
The target is 3017.
NEW QUESTION # 242
With respect to moving averages, changes in price trend are identified by:
- A. The slope of the moving average
- B. Utilizing a triple-cross method
- C. A shorter-term moving average crossing a longer-term moving average
- D. Price crossing its moving average, not by a reversal in the moving average
Answer: D
Explanation:
Detailed Explanation:
While the slope of the MA is useful, the specific signal of a trend change is typically generated when the price crosses the moving average. Waiting for the MA line itself to reverse direction results in significantly more lag26.
NEW QUESTION # 243
Whi75ch of t76he following indicates short covering in futures market?
- A. Price increasing and open interest increasing
- B. Price increasing and open interest decreasing
- C. Price decreasing and open interest increasing
- D. Price decreasing and open interest decreasing
Answer: B
Explanation:
Detailed Explanation:
Short covering means short sellers are buying back their positions to exit. This buying pressure pushes the Price Increasing. Since existing contracts are being closed out (shorts exiting), the Open Interest Decreasing is observed.777879
NEW QUESTION # 244
Identify the Point & Figure pattern highlighted below (Chart showing X column breaking above previous X column):
- A. Ascending triple top
- B. Bullish catapult
- C. Bullish ascending triangle breakout
- D. Triple top buy
Answer: A
Explanation:
Detailed Explanation:
The P&F chart shows three columns of Xs. The first high is X, the second high is higher, and the third breakout is higher still. This pattern of higher highs (resistance moving up) is an Ascending Triple Top, a strong buy signal.
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NEW QUESTION # 245
According to Elliott Wave Theory:
- A. The rule of alternation states that up waves follow down waves
- B. Corrections do not fall below the top of the prior fourth wave
- C. Market action is governed by the Golden Ratio
- D. The number of waves follows the Pythagorean theorem
Answer: C
Explanation:
Detailed Explanation:
R.N. Elliott tied his theory of market waves to the Fibonacci sequence and the Golden Ratio (Phi, 1.618). He believed that market expansions and retracements are governed by these mathematical ratios38.
NEW QUESTION # 246
The most commonly used price to calculate the mov74ing average is the:
- A. High
- B. Low
- C. Close
- D. Midpoint
Answer: C
Explanation:
Detailed Explanation:
While moving averages can be calculated on highs, lows, or typical prices, the closing price is the industry standard for Simple and Exponential Moving Averages because it represents the market's final settlement value for the period.
NEW QUESTION # 247
In 3-box reversal Point and Figure charts double:
- A. Tops can be a continuation pattern
- B. Bottoms and double tops can be continuation patterns
- C. Patterns are invalid
- D. Bottoms can be a continuation pattern
Answer: B
Explanation:
Detailed Explanation:
In Point and Figure, a Double Top Breakout is a buy signal, and a Double Bottom Breakdown is a sell signal.
If these occur in the direction of the trend (e.g., a double top breakout during an uptrend), they act as continuation patterns49.
NEW QUESTION # 248
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. B and C
- C. The DJI and DJT must fail to confirm at the highs
- D. Both the DJI and DJT must break below an important intermediate term support level
Answer: B
Explanation:
Detailed Explanation:
A Dow Theory sell signal requires two stages:
* Divergence (Non-confirmation):One average makes a new high while the other fails to do so (Option B).
* Break of Support:Subsequently,bothaverages must break below their previous secondary reaction lows (Option C).
NEW QUESTION # 249
To calculate moving averages for a Point and Figure chart, first:
- A. Make a decision as to how many columns to average
- B. Use the closing price
- C. Convert the chart to a conventional line chart
- D. Re-draw the chart as a 1X1 chart
Answer: A
Explanation:
Detailed Explanation:
Moving averages on P&F charts are calculated based on the columns. The analyst must first make a decision as to how many columns to average (e.g., a 10-column moving average) to calculate the indicator.
NEW QUESTION # 250
Slippage is normally attributed to:
- A. The bid-ask spread
- B. Default risk
- C. Market risk
- D. Credit risk
Answer: A
Explanation:
Detailed Explanation:
Slippage is the difference between the expected price of a trade and the executed price. It is primarily caused by liquidity issues and the bid-ask spread (paying the spread to enter/exit immediately).
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NEW QUESTION # 251
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
Answer: B
Explanation:
Detailed Explanation:
Moving averages are trend-following indicators. They work best and provide profitable signals when the market is trending. In sideways markets, they fail (whipsaw). Oscillators are the opposite (best in sideways)28.
NEW QUESTION # 252
Which of the following is NOT CORRECT regarding the belt-hold candlestick pattern?
- A. It is an opening bozu
- B. A short belt-hold line has more significance than a long belt-hold line
- C. The pattern consists of one candle
- D. The bearish belt-hold is a long black candle that opens on the high and moves lower through the trading session
Answer: B
Explanation:
Detailed Explanation:
A Belt-Hold is a single candlestick pattern (Opening Bozu). A long belt-hold line (indicating a strong, sustained move from the open) is more significant than a short one. Therefore, statement B is incorrect.
NEW QUESTION # 253
Which of the following is an INCORRECT interpretation of the candlestick piercing pattern?
- A. It occurs after a downtrend
- B. It is a bullish reversal pattern
- C. It is a bearish reversal pattern
- D. The smaller the penetration into the price levels of the prior day's real body, the greater the predictive power
Answer: C
Explanation:
Detailed Explanation:
The Piercing Pattern is a bullish reversal pattern (the opposite of Dark Cloud Cover). Therefore, the statement that it is a "bearish reversal pattern" is the INCORRECT one. (Note: Option C is also technically incorrect as deeper penetration usually implies greater power, but B is a definitional error).
NEW QUESTION # 254
Which of the following is the CORRECT inter-market relationship?
- A. Bonds prices generally trend in the same direction as commodity prices
- B. Bond prices generally move inversely to equity prices
- C. The U.S. dollar generally moves inversely to commodity prices
- D. Financial stocks generally trend inversely to bond prices
Answer: C
Explanation:
Detailed Explanation:
Commodities are priced in dollars. Therefore, a strong dollar makes commodities more expensive for foreign buyers, reducing demand/price. Historically, the U.S. Dollar generally moves inversely to commodity prices47.
NEW QUESTION # 255
Blow-offs are identified:
- A. By observing a sudden sharp drop in prices after a long decline accompanied by heavy trading activity
- B. Using techniques of cycle analysis
- C. By observing a sharp rally in prices after a long advance accompanied by a sharp increase in trading activity
- D. Near market bottoms
Answer: C
Explanation:
Detailed Explanation:
A "Blow-off Top" is a capitulation event at the end of an uptrend. It is characterized by a sharp, steep rally (euphoria) after a long advance, accompanied by extremely high volume, which is followed by a rapid reversal.
NEW QUESTION # 256
Identify the chart formation below (Line chart showing three peaks at same level):
- A. Rounding top
- B. Rising wedge
- C. Triple top
- D. Head and shoulders top
Answer: C
Explanation:
Detailed Explanation:
The line chart shows three distinct peaks reaching approximately the same price resistance level. This is the definition of a Triple Top reversal pattern.
NEW QUESTION # 257
If a peak occurs prior to the halfway point of a cycle, this would be considered:
- A. Normal distribution
- B. Inversion
- C. Left translation
- D. Right translation
Answer: C
Explanation:
Detailed Explanation:
In cycle analysis, Translation refers to the shifting of the cycle peak. If the trend is bearish, the peak tends to occur early (to the left of the midpoint). This is called Left Translation. (Right translation occurs in bullish trends).
NEW QUESTION # 258
What pattern is found in point and figure charts?
- A. Doji
- B. All of the above
- C. Island reversal
- D. Head and shoulders
Answer: D
Explanation:
Detailed Explanation:
Head and Shoulders patterns appear clearly on Point and Figure charts and are traded similarly to bar charts (break of neckline). Dojis are exclusive to candlestick charts. Island reversals require gaps, which generally do not appear on standard P&F charts.
NEW QUESTION # 259
Which of the following is a CORRECT Point and Figure chart pattern interpretation?
- A. Upside breakout above an ascending triple top generates a sell signal
- B. Downside breakout below a bearish support line generates a buy signal
- C. Upside breakout above a bullish resistance line generates a sell signal
- D. Downside breakout of a bearish triangle generates a sell signal
Answer: D
Explanation:
Detailed Explanation:
In Point and Figure analysis, a Bearish Triangle is a pattern of lower highs and higher lows (coiling) where the breakdown is expected. A downside breakout (move below the previous O column low) constitutes a valid sell signal32.
NEW QUESTION # 260
Calculate the nominal return based on the information provided below:
The S&P 500 index fell 0.003 percent in 2015.
Dividends paid during the year equaled 2.089 percent of the index's value.
Inflation was 3.4 percent.
- A. -1.3%
- B. -2.08%
- C. 1.30%
- D. 2.08%
Answer: D
Explanation:
Detailed Explanation:
Nominal Return is the total return before adjusting for inflation.
Formula: Price Appreciation + Dividend Yield.
Price Change = -0.003%
Dividends = +2.089%
Total Nominal Return = 2.089% - 0.003% = 2.086%.
Rounded to two decimal places: 2.08%.
NEW QUESTION # 261
Which type of gap is LEAST likely to be filled when it occurs with high volume?
- A. Exhaustion
- B. Common
- C. Runaway
- D. Breakaway
Answer: D
Explanation:
Detailed Explanation:
A Breakaway Gap signals the start of a new major trend (breaking out of a consolidation). Because it represents a significant shift in supply/demand and the start of a new momentum phase, it is the least likely to be filled in the near term. Common gaps fill almost immediately.
NEW QUESTION # 262
Enrique Perrago, CMT, is an analyst for a large investment management firm. Perrago issued a research report with an initial buy recommendation on Graham Airlines. The report includes an analysis using some very new and controversial methods of technical analysis, along with complete documentation as to the procedure and rationale. Ten minutes after emailing the report to his clients, Perrago buys Graham stock for his mother's account. With respect to the MTA Code of Ethics, Perrago's actions are:
- A. Not in violation of the Code
- B. In violation of the Code with respect to the security purchase, but not the methodology
- C. In violation of the Code with respect to both the methodology and the security purchase
- D. In violation of the Code with respect to the methodology, but not the security purchase
Answer: C
Explanation:
Detailed Explanation:
(Note: The provided answer key states D. Let's analyze why).
* Security Purchase:Front-running. Buying stock 10 minutes after issuance is likely not enough time for clients to act. He must give clients adequate opportunity to act on the recommendation before trading for himself or family (Priority of Transactions).
* Methodology:While innovation is allowed, the Code requires using methods that are generally accepted or proving reasonable basis. Using "very new and controversial" methods might be seen as lacking a "reasonable basis" unless heavily substantiated. The key likely flags both as violations7777.
NEW QUESTION # 263
Indicators that measure what uninformed investors are doing are referred to as:
- A. Flow of funds indicators
- B. Sentiment indicators
- C. Cycle indicators
- D. Breadth indicators
Answer: B
Explanation:
Detailed Explanation:
Sentiment indicators (like the Odd Lot Short Ratio or Put/Call Ratio) attempt to measure the psychology of the crowd, often targeting "uninformed" or retail investors to use as a contrarian signal.
NEW QUESTION # 264
Which of the following is LEAST true of a doji pattern?
- A. The opening and closing prices are at identical levels
- B. It represents indecision
- C. It is usually a reversal pattern
- D. It is usually a continuation pattern
Answer: D
Explanation:
Detailed Explanation:
A Doji (Open = Close) represents perfect indecision/balance. It is classically considered a reversal pattern (or at least a warning of trend change), especially at tops or bottoms. It is least likely to be considered a continuation pattern.177
NEW QUESTION # 265
A complete collection of daily charts of the Wall Street was first published by:
- A. Samuel Nelson
- B. Richard Wyckoff
- C. Robert Rhea
- D. William Hamilton
Answer: C
Explanation:
Detailed Explanation:
Robert Rhea, a prominent Dow Theorist, was instrumental in compiling and publishing extensive chart data.
His work (like "The Dow Theory") relied heavily on the visual history of the averages.
NEW QUESTION # 266
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