Cmt level 1 - Study guides, Class notes & Summaries

CMT Level 1 Exam Guide ( Update) An Introduction to Technical Analysis | Questions and Verified Answers| Grade A| 100% Correct Q: • List advantages of reviewing price information in chart format Answer: • 1. Provide price history • 2. Provide good sense of Market's volatility • 3. Useful for the fundamental analyst - Analyst can find big price move on chart, determine what fundamentals were changed at this time, and then construct a price behavioral model • 4. Serve as a t...

CMT Level 1 (Chartered Market Technician Level 1 study material) Questions and Answers 100% Solved 1 - Define what is meant by a trend in technical analysis. Correct answer Uptrend = price reaches higher peaks and troughs; downtrend = prices reach lower peaks and troughs; flat trend = price within a range without significant downward movement. 1 - Explain why determining the trend is important to analysts. Correct answer Determining a trend early, at the beginning of an up/downtrend ena...

CMT LEVEL 1 PRACTICE EXAM STUDY MATERIALS QUESTION AND ANSWERS (VERIFIED ANSWERS)

CMT Level 1; Questions and Answers 100% Solved What is the Elliot Wave Principle? Correct answer It is a concept that breaks down trends into 8 core waves. In the first sequence, there is the basic 5-wave (motive) pattern that moves the market, then there is the corrective sequence, which are 3-wave corrective patterns that pulls back from the motive wave. Elliot waves are fractal in nature and follow a series of strict rules. What are the different types of Motive Waves? Correct answe...

CMT Level 1 Practice Exam Questions and Answers 100% Solved In constructing a point and Figure chart, a new entry is added only when? Correct answer Price has moved equal to or more than the specified box size When the Stochastic indicator crosses below 20, it is signaling? Correct answer The price is vulnerable to a reversal, but no action needs to be taken just yet. What principle describes a characteristic of related cycles Correct answer Harmonics What formation is often called a c...

CMT Level 1 (Questions & Answers) Solved 100% Correct!!

CMT Level 1(Study Material);Questions and Answers latest Update 100% Solved David, a senior analyst with a brokerage firm, decides to change his recommendation for the common stock of Pigeon Industries, Inc. from a "buy" to a "sell". This change in investment advice is mailed to all the firm's clients on Wednesday. Next day, a client calls in with a buy order for 500 shares of Pigeon Industries, Inc. In this circumstance, Johnson should: Correct answer Advise the customer of the ch...

MTA CMT Level 1; Questions and Answers 100% Solved What are the basic tenets of Dow Theory Correct answer 1.) The averages discount everything 2.) The market has three trends 3.) Major trends have three phases 4.) The averages must confirme each other 5.) Volume must confirm trend 6.) A trend is in effect until it gives definitive signals that it has reversed Technical Analysis by Kirkpatrick Correct answer The study of prices in freely traded markets with the intent of making profita...

Chartered Market Technician CMT Level 1 Sample Questions Cycles are GENERALLY measured a. High to low b. Low to low c. High to high d. Either b or c - Answer: b. Low to low Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 19. This cycle principle states as stocks go through similar cycles, the size and magnitude will differ. a. Commonality b. Variation c. Summation d. Proportiona...

CMT Level 1; Questions and Answers 100% Solved Simple Moving Average Correct answer A simple average of the past X number of bars Weighted Moving Average Correct answer A moving average where the most recent price, in the past X number of bars, is multiplied by X. The next previous bar by X-1, etc. Exponential Moving Average Correct answer A moving average that applies weights to the current price and the previous EMA value. This helps avoid the drop-off effect that other averages are s...