CMT-Level-II exam

Which of the following are valid interpretations of the put-call ratio?A . It is the major sentiment index used for options tradingB . It is used as a contrary indicatorC . Extreme levels are trading signalsD . All of the aboveView AnswerAnswer: D

Which of the following factors would increase the predictive power of an engulfing pattern?A . The first day has a very long real body and the second day has a very short real bodyB . The pattern appears after a consolidation patternC . There is heavy volume on the first...

Which of the following is a CORRECT inter-market relationshipA . Bond prices move inversely to equitiesB . Bonds prices trend in the same direction as commoditiesC . TheE . dollar moves inversely to commoditiesF . Financial stocks trend inversely to bondsView AnswerAnswer: C

An evening doji star:A . Has a doji in the last positionB . Has a doji in the middle positionC . Is completely comprised of dojisD . Is completed by dojis leading out of the patternView AnswerAnswer: B

Which of the following is a TRUE statement about the Stochastic Oscillator?A . It examines the most recent closing price as a percentage of the price range over a window of timeB . It is not as sensitive to recent price action as other indicators like Rate of ChangeC ....

In a meeting with his firm's senior research analyst, George Powel, a proponent of the CFA Institute Research Objectivity Standards (ROS), stated that the key objective of the ROS is to create voluntary reporting of research practices that promote independent and objective research to CFA Institute on an annual basis....

Which of the following actions would be a violation of the Standard VII(A) Conduct as Participants in CFA Institute Programs?A . Exaggerating the implications of holding the CFA designation.B . Misrepresenting information on the Professional Conduct Statement.C . Participating in a civil disobedience movement to oppose a government action.D ....

Tick volume refers to:A . the number of contracts traded at each price tick.B . the number of contracts traded at each time interval.C . the change in open interest during a particular time interval.D . the number of recorded price changes during a particular time interval.View AnswerAnswer: D

Which of the following statement is not true about the Diamond Top with regards to pattern analysis?A . It is a profitable patternB . It consists of a combination of a broadening pattern and a symmetrical triangleC . It occurs at the top of a very sharp upward rise in...

Which of the following are true of the concepts of divergence and confirmation in technical analysisA . They are opposite conceptsB . Confirmation has a valid technical interpretation but in the case of divergence, no valid conclusion can be drawnC . Confirmation indicates a likely change in trend since all...