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CMT Association CMT-Level-I Exam Syllabus Topics:

SectionObjectives
Theory and History- Behavioral Finance
  • 1. Investor Psychology
  • 2. Market Sentiment
- Evolution of Technical Analysis
  • 1. History of Technical Analysis
  • 2. Market Theory Foundations
- Key Concepts in Technical Analysis and Market Analysis
  • 1. Price Discounting Mechanism
  • 2. Market Trends
Advanced Techniques- Systematic Trading
  • 1. Trading Systems
  • 2. Backtesting
- Cross-asset Analysis
  • 1. Asset Correlation
  • 2. Intermarket Relationships
- Statistical Analysis
  • 1. Regression Analysis
  • 2. Probability Concepts
- Volatility Analysis
  • 1. Risk Measurement
  • 2. Volatility Indicators
- Principles of Risk Management
  • 1. Portfolio Risk Control
  • 2. Position Sizing
Classical Techniques- Chart Types and Construction
  • 1. Line Charts
  • 2. Candlestick Charts
- Cycles
  • 1. Market Cycles
  • 2. Seasonality
- Chart Pattern Analysis
  • 1. Reversal Patterns
  • 2. Continuation Patterns
- Internal and External Technical Indicators
  • 1. Momentum Indicators
  • 2. Volume Indicators
- Trend Analysis
  • 1. Support and Resistance
  • 2. Trendlines and Channels

CMT Association CMT Level 1 Sample Questions:

Question 1

A complete Elliott wave cycle is made up of _______ waves.

A. Three
B. Five
C. Eight
D. Thirteen


Question 2

In rectangle, triangle, flag and pennant patterns, volume generally:

A. Spikes midway through the pattern
B. Cannot be measured
C. Increases as the pattern develops
D. Decreases as the pattern develops


Question 3

The candlestick hammer pattern:

A. Comes after market rallies
B. Has no lower shadow
C. Need not be confirmed by other indicators
D. Has a large real body


Question 4

The interchangeability of a financial instrument is normally referred to as:

A. Hedging
B. Arbitraging
C. Backwardation
D. Fungibility


Question 5

A French bank wants to buy US government bonds. What route should they take?

A. All the three routes given above are applicable
B. Buy bonds from primary dealers
C. Offer US government their proposal though there is no auction
D. Participate in US government auctions


Solutions:

Question 1
Answer: C
Question 2
Answer: D
Question 3
Answer: C
Question 4
Answer: D
Question 5
Answer: B

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