Free CMT-Level-II Questions for CMT Association CMT Level II CMT-Level-II Exam as PDF & Practice Test Engine

Exam Code/Number: CMT-Level-II
Exam Name/Title: CMT Level II Exam
Certification Provider: CMT Association
Corresponding Certification: CMT Program

Exam Questions: 264
Updated On: Jun 18, 2026

Question #1

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

A. A very high ratio indicates an oversold market

B. When call volume exceeds put volume, this has bullish future implications for the market

C. When options traders are bullish, call volume exceeds put volume

D. A low ratio is considered a warning of an overbought market

Discussion 0

Correct Answer: B Vote an answer

Question #2

According to the raw performance statistics which of the following statements predicts the correct when the performance of a broadening pattern at its best and its failure rate?

A. At best, the performance of an expanding pattern is below average, and its rate of failure is above average

B. At best, the performance of an expanding pattern is above average, and its rate of failure is above average

C. At best, the performance of an expanding pattern is average, and its rate of failure is below average

D. At best, the performance of an expanding pattern is average, and its rate of failure is above average

Discussion 0

Correct Answer: D Vote an answer

Question #3

Which of the following would be a valid trading interpretation of top chart patterns?

A. Sell whenever a major support level is tested but not breached

B. Liquidate positions at prior major resistance points, top formations or the break of a major support line

C. Sell when there is a major price retrenchment in a bull market

D. Find a market with a long consolidating base and high volatility

Discussion 0

Correct Answer: B Vote an answer

Question #4

Which of the following is a continuation pattern:

A. Head and shoulders

B. Wedge

C. V-bottom

D. Broadening top

Discussion 0

Correct Answer: B Vote an answer

Question #5

Which of the following is MOST often a reversal pattern:

A. Head and shoulders

B. Wedge

C. Triangle

D. Pennant

Discussion 0

Correct Answer: A Vote an answer

Question #6

What is the main impediment to making objective trading decisions?

A. Conflict between technical and fundamental models

B. Failing to consider trading costs

C. Emotional considerations cloud judgment

D. Lack of complete information

Discussion 0

Correct Answer: C Vote an answer

Question #7

What is the measuring objective for double top chart pattern?

A. The distance between the price level at the first top and the second top

B. The height of the pattern from the breakdown point

C. The price change of the move prior to entering the double top pattern

D. The distance between the two chart tops

Discussion 0

Correct Answer: B Vote an answer

Question #8

Which of the following is a continuation pattern?

A. Doji

B. Hammer

C. Umbrella

D. Windows

Discussion 0

Correct Answer: D Vote an answer

Question #9

The strength and direction of the relationship between two markets is measured by:

A. regression.

B. moving Average.

C. spread.

D. correlation coefficient.

Discussion 0

Correct Answer: D Vote an answer

Question #10

Which of the following is considered a continuation pattern?

A. Head and shoulders

B. Triangle

C. Double top

D. Inverse head and shoulders

Discussion 0

Correct Answer: B Vote an answer

Question #11

Protective stops that are placed too far away can result in which of the following factors?

A. Small frequent elections

B. Unwanted liquidation

C. Large losses

D. Too many trades

Discussion 0

Correct Answer: C Vote an answer

Free CMT-Level-II Questions for CMT Association CMT Level II CMT-Level-II Exam as PDF & Practice Test Engine

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