Free CMT Association CMT-Level-II Practice Exam Questions and Answers 2026

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Total 179 Questions | Updated On: Apr 01, 2026

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Question 1

Which of the following are true of the concepts of divergence and confirmation in technical analysis

A : They are opposite concepts

B : Confirmation has a valid technical interpretation but in the case of divergence, no valid conclusion can be drawn

C : Confirmation indicates a likely change in trend since all technical indicators are in agreement

D : Divergence indicates continuation in trend since different technical indicators do not agree

Answer: A

Question 2

Which of the following point and figure trading techniques limits risk compared to more basic trading rules?

A : Buy or sell as soon as a new column is created on the chart

B : Close out your trade on the second reversal back in the direction of the original signal

C : Take small consistent profits, but allow large, windfall profitable positions to run

D : Buy or sell on pullbacks after initial trade signal

Answer: D

Question 3

Which of the following is one of the advantages of computerized trading systems?

A : Computerized trend following systems are profitable in all types of markets

B : Computerized systems improve the interpretation of complex trading patterns

C : Computerized trading systems remove the human emotion element

D : All of the above

Answer: C

Question 4

How might one detrend data to determine if a cycle exists?

A : Divide the current prices by a moving average of those prices

B : Create an oscillator that plots a standard deviation of the period lows

C : Apply volume weighting to both high and lows in the data

D : Plot a linear regression line through the data midpoin

Answer: A

Question 5

How can one identify the existence of a cycle?

A : Remove price trend

B : Switch time frames

C : Use only period extremes

D : None of the above

Answer: A

Page: 1 / 36

Total 179 Questions | Updated On: Apr 01, 2026

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