CMT LEVEL 2 - SAMPLE EXAM
The MTA Code of Ethics applies to:
a. Members only
b. Affiliates only
c. CMT candidates
d. All of the above - Answer- The MTA Code of Ethics applies to:
d. All of the above
An MTA Member or Affiliate using the MTA mailing list to send _____________ would
not be in
violation of the Code of Ethics:
a. Research reports
b. A free membership to a club
c. Charting discount coupons
d. CMT Newsletter - Answer- An MTA Member or Affiliate using the MTA mailing list to
send ____________would not be in
violation of the Code of Ethics:
d. CMT Newslette
Which of the following would not be a violation of the Code of Ethics in a published
research report or
statement?
a. Estimates which are subject to change
b. Inaccurate information
c. Statements inconsistent with the accumulated knowledge of technical analysis
d. Statements which disparage the work of other analysts - Answer- Which of the
following would NOT be a violation of the code of ethics in a published research report
or
statement?
a. Estimates which are subject to change
What is the position of the MTA Code of Ethics as it pertains to trading on inside
information?
a. Under no circumstances is insider trading allowed
b. The Code of Ethics takes no position on insider trading
c. Insider trading which violates the laws/regulations of any governmental or regulatory
agency is
prohibited
d. Inside information may be disseminated but not acted upon - Answer- What is the
position of the MTA Code of Ethics as it pertains to trading on inside information?
c. Insider trading which violates the laws/regulations of any governmental or regulatory
agency is
prohibited
,What is the MTA's position with respect to knowledge of client and employer
information:
a. Only knowledge of current clients and employers must be kept in confidence
b. The MTA Code of Ethics does not apply to confidentiality of unlawful client or
employer activity
c. The MTA Code of Ethics is silent on client and employer confidentiality so members
must refer
to laws/rules promulgated by regulatory authorities
d. All information pertaining to any lawful activity of past or present clients or employers
must be
kept in confidence - Answer- What is the MTA's position with respect to knowledge of
client and employer information:
d. All information pertaining to any lawful activity of past or present clients or employers
must be kept in
confidence
According to the MTA Code of Ethics, what prohibitions MUST be adhered to after
making a buy or sell
recommendation?
a. Allow adequate time for clients to act on recommendations before the analyst acts on
the
recommendation
b. Analysts must give clients and their employer adequate time to trade, but the
analyst's family
members are under no such restriction
c. Analysts may effect trades for their own account even if their employer has not had
time to act
on their recommendation
d. Insider trading activity is the subject of SEC regulations, therefore the MTA Code of
Ethics is
silent on this issue - Answer- According to the MTA Code of Ethics, what prohibitions
MUST be adhered to after making a buy or sell
recommendation?
a. Allow adequate time for clients to act on recommendations before the analyst acts on
the
recommendation
What position does the MTA take on plagiarism?
a. Analysts can never copy other analysts work
b. Other analysts work can be copied with permission in advance
c. If the author of the original work is deceased, this work cannot be copied since
permission
cannot be obtained
d. Research reports which are not direct copies but use substantially the same
language as other
,analysts work would be permissible - Answer- What position does the MTA take on
plagiarism?
b. Other analysts work can be copied with permission in advance
What steps must analysts take in introducing new methods of technical analysis under
the MTA Code
of Ethics?
a. All new techniques must be fully documented even if proprietary methods must be
disclosed to
do so
b. New procedures must be documented as to procedure and rationale
c. New procedures must be supported by adequate back testing confirmed by at least
technician
d. New methods need not be consistent with the accumulated knowledge of the field of
technical
analysis - Answer- What steps MUST analysts take in introducing new methods of
technical analysis under the MTA Code of
Ethics?
b. New procedures must be documented as to procedure and rationale
Which of the following must every MTA Member and Affiliate comply with?
a. Rules promulgated by the MTA Board of Governors
b. MTA Constitution
c. MTA By-laws
d. All of the above - Answer- Which of the following MUST every MTA Member and
Affiliate comply with?
d. All of the above
Which of the following MUST be adhered to in published or written analytical reports?
a. Statements must be consistent with available evidence
b. Statements must be consistent with the accumulated knowledge of technical analysis
c. Statements may not indefensibly disparage the work of other analysts
d. All of the above - Answer- Which of the following MUST be adhered to in published or
written analytical reports?
d. All of the above
Which of the following would BEST improve the profitability of a trend-based trading
system?
a. Use of additional trend periods
b. Increase the delay in taking action after a trade signal is given
c. Utilize support and resistance lines
d. Utilize candlestick charts instead of bar charts - Answer- Which of the following would
BEST improve the profitability of a trend-based trading system?
b. Increase the delay in taking action after a trade signal is given
Which of the following would NOT be true in designing a trading system utilizing bands?
, a. Buy when prices penetrate the upper band
b. Close out longs when prices reverse and go below the center of the band
c. Close out shorts when prices reverse and go below the center of the band
d. Sell when price breaks below the lower band - Answer- Which of the following would
NOT be true in designing a trading system utilizing bands?
c. Close out shorts when prices reverse and go below the center of the band
In trend-based trading systems, what is the major determinant of trading activity (i.e.,
how often buy
or sell signals are generated)?
a. Smoothing technique used
b. Distance between bands
c. Selection of trend speed
d. Use of a scaling factor - Answer- In trend-based trading systems, what is the major
determinant of trading activity (i.e., how often buy or
sell signals are generated)?
c. Selection of trend speed
A trend-based trading system where the trend is the average of a pre-determined
number of previous
days' (n) closing prices is:
a. Point and figure
b. Simple moving average
c. Linear regression slope
d. N-day breakout - Answer- A trend-based trading system where the trend is the
average of a pre-determined number of previous
days' (n) closing prices is:
b. Simple moving average
A trend-based trading system where the trend is the weighting of the recent closing
prices by a
smoothing constant:
a. Point and figure
b. Simple moving average
c. Exponential smoothing
d. N-day break - Answer- A trend-based trading system where the trend is the weighting
of the recent closing prices by a
smoothing constant:
c. Exponential smoothing
A trend based trading system where the trend is the slope of a straight line found using
a least squares
regression:
a. Point and figure
b. Simple moving average
c. Linear regression slope
The MTA Code of Ethics applies to:
a. Members only
b. Affiliates only
c. CMT candidates
d. All of the above - Answer- The MTA Code of Ethics applies to:
d. All of the above
An MTA Member or Affiliate using the MTA mailing list to send _____________ would
not be in
violation of the Code of Ethics:
a. Research reports
b. A free membership to a club
c. Charting discount coupons
d. CMT Newsletter - Answer- An MTA Member or Affiliate using the MTA mailing list to
send ____________would not be in
violation of the Code of Ethics:
d. CMT Newslette
Which of the following would not be a violation of the Code of Ethics in a published
research report or
statement?
a. Estimates which are subject to change
b. Inaccurate information
c. Statements inconsistent with the accumulated knowledge of technical analysis
d. Statements which disparage the work of other analysts - Answer- Which of the
following would NOT be a violation of the code of ethics in a published research report
or
statement?
a. Estimates which are subject to change
What is the position of the MTA Code of Ethics as it pertains to trading on inside
information?
a. Under no circumstances is insider trading allowed
b. The Code of Ethics takes no position on insider trading
c. Insider trading which violates the laws/regulations of any governmental or regulatory
agency is
prohibited
d. Inside information may be disseminated but not acted upon - Answer- What is the
position of the MTA Code of Ethics as it pertains to trading on inside information?
c. Insider trading which violates the laws/regulations of any governmental or regulatory
agency is
prohibited
,What is the MTA's position with respect to knowledge of client and employer
information:
a. Only knowledge of current clients and employers must be kept in confidence
b. The MTA Code of Ethics does not apply to confidentiality of unlawful client or
employer activity
c. The MTA Code of Ethics is silent on client and employer confidentiality so members
must refer
to laws/rules promulgated by regulatory authorities
d. All information pertaining to any lawful activity of past or present clients or employers
must be
kept in confidence - Answer- What is the MTA's position with respect to knowledge of
client and employer information:
d. All information pertaining to any lawful activity of past or present clients or employers
must be kept in
confidence
According to the MTA Code of Ethics, what prohibitions MUST be adhered to after
making a buy or sell
recommendation?
a. Allow adequate time for clients to act on recommendations before the analyst acts on
the
recommendation
b. Analysts must give clients and their employer adequate time to trade, but the
analyst's family
members are under no such restriction
c. Analysts may effect trades for their own account even if their employer has not had
time to act
on their recommendation
d. Insider trading activity is the subject of SEC regulations, therefore the MTA Code of
Ethics is
silent on this issue - Answer- According to the MTA Code of Ethics, what prohibitions
MUST be adhered to after making a buy or sell
recommendation?
a. Allow adequate time for clients to act on recommendations before the analyst acts on
the
recommendation
What position does the MTA take on plagiarism?
a. Analysts can never copy other analysts work
b. Other analysts work can be copied with permission in advance
c. If the author of the original work is deceased, this work cannot be copied since
permission
cannot be obtained
d. Research reports which are not direct copies but use substantially the same
language as other
,analysts work would be permissible - Answer- What position does the MTA take on
plagiarism?
b. Other analysts work can be copied with permission in advance
What steps must analysts take in introducing new methods of technical analysis under
the MTA Code
of Ethics?
a. All new techniques must be fully documented even if proprietary methods must be
disclosed to
do so
b. New procedures must be documented as to procedure and rationale
c. New procedures must be supported by adequate back testing confirmed by at least
technician
d. New methods need not be consistent with the accumulated knowledge of the field of
technical
analysis - Answer- What steps MUST analysts take in introducing new methods of
technical analysis under the MTA Code of
Ethics?
b. New procedures must be documented as to procedure and rationale
Which of the following must every MTA Member and Affiliate comply with?
a. Rules promulgated by the MTA Board of Governors
b. MTA Constitution
c. MTA By-laws
d. All of the above - Answer- Which of the following MUST every MTA Member and
Affiliate comply with?
d. All of the above
Which of the following MUST be adhered to in published or written analytical reports?
a. Statements must be consistent with available evidence
b. Statements must be consistent with the accumulated knowledge of technical analysis
c. Statements may not indefensibly disparage the work of other analysts
d. All of the above - Answer- Which of the following MUST be adhered to in published or
written analytical reports?
d. All of the above
Which of the following would BEST improve the profitability of a trend-based trading
system?
a. Use of additional trend periods
b. Increase the delay in taking action after a trade signal is given
c. Utilize support and resistance lines
d. Utilize candlestick charts instead of bar charts - Answer- Which of the following would
BEST improve the profitability of a trend-based trading system?
b. Increase the delay in taking action after a trade signal is given
Which of the following would NOT be true in designing a trading system utilizing bands?
, a. Buy when prices penetrate the upper band
b. Close out longs when prices reverse and go below the center of the band
c. Close out shorts when prices reverse and go below the center of the band
d. Sell when price breaks below the lower band - Answer- Which of the following would
NOT be true in designing a trading system utilizing bands?
c. Close out shorts when prices reverse and go below the center of the band
In trend-based trading systems, what is the major determinant of trading activity (i.e.,
how often buy
or sell signals are generated)?
a. Smoothing technique used
b. Distance between bands
c. Selection of trend speed
d. Use of a scaling factor - Answer- In trend-based trading systems, what is the major
determinant of trading activity (i.e., how often buy or
sell signals are generated)?
c. Selection of trend speed
A trend-based trading system where the trend is the average of a pre-determined
number of previous
days' (n) closing prices is:
a. Point and figure
b. Simple moving average
c. Linear regression slope
d. N-day breakout - Answer- A trend-based trading system where the trend is the
average of a pre-determined number of previous
days' (n) closing prices is:
b. Simple moving average
A trend-based trading system where the trend is the weighting of the recent closing
prices by a
smoothing constant:
a. Point and figure
b. Simple moving average
c. Exponential smoothing
d. N-day break - Answer- A trend-based trading system where the trend is the weighting
of the recent closing prices by a
smoothing constant:
c. Exponential smoothing
A trend based trading system where the trend is the slope of a straight line found using
a least squares
regression:
a. Point and figure
b. Simple moving average
c. Linear regression slope
