CMT Association CMT-LEVEL-II Exam
CMT Level II Exam (Page 8 )

Updated On: 7-Feb-2026

Which of the following factors would increase the predictive power of the evening star pattern?

  1. If there is no overlap among the real bodies of the candles in the pattern
  2. If the last candle closes deeply into the body of the first candle
  3. If there is light volume on the first candle of the pattern and heavy volume on the last candle of the pattern
  4. All of the above

Answer(s): D



Which of the following is an INCORRECT definition of cycle terminology?

  1. Amplitude - the height of the wave (cycle)
  2. Period - the time needed to finish one wave (cycle)
  3. Frequency - the number of cycles that repeat every 360°
  4. Phase - a measure of separation between the top and bottom of a wave (cycle)

Answer(s): D



Which of the following is an important point in interpreting chart patterns?

  1. Chart pattern interpretation is based solely on the current pattern and ignores the prior trend
  2. Chart patterns should be interpreted separately from trendline analysis
  3. Longer-term patterns are more valid than shorter patterns
  4. Topping patterns usually have smaller price ranges and take longer to build

Answer(s): C



Which is the CORRECT interpretation of the candlestick hanging man pattern?

  1. A hanging man always has a black real body
  2. A hanging man comes after a market rally
  3. A hanging man has no lower shadow
  4. A hanging man need not be confirmed by other indicators

Answer(s): B



Which of the following is typically a period of heavier volume?

  1. First day of the week
  2. Day before a holiday
  3. Triple witching days
  4. Summer days

Answer(s): C






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