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CMT Association is a global non-profit organization that focuses on advancing the discipline of technical analysis in financial markets. The association offers a range of certifications, including the CMT (Chartered Market Technician) designation, which is considered to be the gold standard in technical analysis. The CMT-Level-I (CMT Level I) Exam is the first step towards earning the CMT designation and showcases a candidate's understanding of basic technical analysis concepts.
CMT Association is one of the most recognized and respected organizations in the field of technical analysis. It stands for the Chartered Market Technician Association and has been providing essential knowledge and resources to professional traders and analysts for over 50 years. And one of the ways it offers this support is through the CMT-Level-I (CMT Level I) Certification Exam.
CMT Association CMT-Level-I exam is a computer-based exam that consists of 132 multiple-choice questions. Candidates have 2 hours to complete the exam, and they must score a minimum of 70% to pass. CMT-Level-I exam is available in English, Spanish, and Chinese, and candidates can take the exam at any time of the year. CMT-Level-I exam fee varies depending on the candidate's location and membership status.
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The PrepAwayExam CMT-Level-I Practice Questions are designed and verified by experienced and renowned CMT-Level-I exam trainers. They work collectively and strive hard to ensure the top quality of CMT-Level-I exam practice questions all the time. The CMT-Level-I Exam Questions are real, updated, and error-free that helps you in CMT Association CMT-Level-I exam preparation and boost your confidence to crack the upcoming CMT-Level-I exam easily.
CMT Association CMT Level 1 Exam Sample Questions (Q174-Q179):
NEW QUESTION # 174
A symmetrical triangle is:
- A. Usually a continuation pattern
- B. All of the above
- C. Also called a coil
- D. A temporary pause in the existing trend
Answer: B
Explanation:
Detailed Explanation:
A symmetrical triangle is formed by converging trendlines (lower highs and higher lows). It represents a compression of volatility (a coil). It is statistically most often a continuation pattern that represents a pause before the trend resumes.
NEW QUESTION # 175
The Efficient Market Hypothesis assumes that:
- A. Prices trail information
- B. Most investors will act irrationally
- C. Most investors will act rationally
- D. Crowd behavior creates unsustainable bubbles
Answer: C
Explanation:
Detailed Explanation:
A foundational assumption of the Efficient Market Hypothesis (EMH) is that market participants are rational and process information correctly to value assets. (Technical Analysis often assumes the opposite- irrationality).
NEW QUESTION # 176
Identify the type of gap highlighted in the chart (Chart showing a gap at the end of a trend followed by a reversal):
- A. Exhaustion gap
- B. Breakaway gap
- C. Runaway gap
- D. Common gap
Answer: A
Explanation:
Detailed Explanation:
The gap appears after a long, sustained uptrend. Immediately after the gap, prices stall and reverse lower. This indicates the final gasp of buying panic, defining it as an Exhaustion Gap.
---
NEW QUESTION # 177
The simple moving average:
- A. None of the above
- B. Gives greater weight to the more recent price
- C. Gives equal weight to each periods price
- D. Assigns greater weight to more recent data and includes all of the data in the life of the instrument
Answer: C
Explanation:
Detailed Explanation:
A Simple Moving Average (SMA) is an arithmetic mean. It calculates the average by summing the prices over a set period and dividing by the number of periods. Therefore, it gives equal weight to every price point in the calculation window (e.g., day 1 counts as much as day 50).1
NEW QUESTION # 178
Av32erage True Range (ATR) is an indicator that measures:
- A. Volatility
- B. Momentum
- C. Volume
- D. Breadth
Answer: A
Explanation:
Detailed Explanation:
Developed by J. Welles Wilder, ATR measures the degree of price movement (range) over a specific period.
It is a pure measure of volatility and does not indicate price direction.
NEW QUESTION # 179
......
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