CMT Level 2 Exams ( Updates STUDY BUNDLE
PACKAGE) The Integration of Technical Analysis |
Questions and Verified Answers| Grade A| 100%
Correct
Charts - ANSWERRepresentation of human behavior
Gann's Grand Rush - ANSWERFinal move before a collapse or sell off before a rally
Importing - ANSWERSelling/Weaker Dollar
Exporting - ANSWERBuying/Strong Dollar
Consumer Confidence - ANSWERHow public feels about spending money
Principle of Dow Theory - ANSWERAverage Discounts Everything
Three classifications of trends - ANSWERPrimary, Secondary, Minor
Primary Trend - ANSWERYears
Secondary Trend - ANSWERMonths/Weeks
Minor Trend - ANSWERDays
3 Phases Bull Mkt (Dow Theory) - ANSWERAccumulation, increase volume,
Specualtion
Accumulation Phase - ANSWERCautious investors, buy safe, good value stocks -
mostly high yield and utilities
Increased Volume Phase - ANSWERBroader range of investors, secondary stocks
popular
Speculation Phase - ANSWEREveryone talks about market, trade on margin, public
involved, buy indiscriminately
3 Phases Bear Mkt (Dow Theory) - ANSWERDistribution, Panic, Lack of Buying
Interest
Distribution Phase - ANSWERPros selling to less sophisticated buyers
Panic Phase - ANSWERNews talks of the end of the bull market, margin calls
, Dow Theory Confirmation - ANSWERTwo of three major averages must confirm,
DJIA, TRAN, UTIL
Dow Theory Volume - ANSWERVolume goes w the Trend
Dow Theory Prices - ANSWERUses only closing prices
Dow Theory Trend - ANSWERPersists until a reversal is signaled
Trendline - ANSWERMost popular tool in technical analysis
Common Gap - ANSWERNo particular point or significance
Breakaway Gap - ANSWERInitial Gap on breakout or break down, usually on high
volume, does not have to fill
Exhaustion Gap - ANSWERFinal Gap in Trend. Confirms reversal
Runaway Gap - ANSWERGap that continues and confirms a trend
Spike - ANSWERSingle, volatile day, recognized a day later because range must be
lower
Spike "Local Top" - ANSWERSpike up that usually becomes resistance when met
again
Pivot Point (Buy) - ANSWERReversal, buy or close short when bottom occurs and
close is higher than previous close
Pivot Point (Sell) - ANSWERReversal, sell when pivot occurs and closes below
previous close
Caps/Cups - ANSWER3 Day price move where middle Day must be high (cap) or low
(cup) to signal reversal
Outside Day - ANSWERDay with higher high and lower low than previous day -
engulfing
Continuation Patterns - ANSWERTriangles, Flags, Pennants, Wedges
Symmetric Triangle - ANSWERContinuation pattern, beginning of Trend where there
is uncertainty
Descending Triangle - ANSWERContinuation Pattern, found in downtrends, price
rallies off support level but to lower highs
Triangle Size - ANSWERNo less than two weeks, no more than 3 months
PACKAGE) The Integration of Technical Analysis |
Questions and Verified Answers| Grade A| 100%
Correct
Charts - ANSWERRepresentation of human behavior
Gann's Grand Rush - ANSWERFinal move before a collapse or sell off before a rally
Importing - ANSWERSelling/Weaker Dollar
Exporting - ANSWERBuying/Strong Dollar
Consumer Confidence - ANSWERHow public feels about spending money
Principle of Dow Theory - ANSWERAverage Discounts Everything
Three classifications of trends - ANSWERPrimary, Secondary, Minor
Primary Trend - ANSWERYears
Secondary Trend - ANSWERMonths/Weeks
Minor Trend - ANSWERDays
3 Phases Bull Mkt (Dow Theory) - ANSWERAccumulation, increase volume,
Specualtion
Accumulation Phase - ANSWERCautious investors, buy safe, good value stocks -
mostly high yield and utilities
Increased Volume Phase - ANSWERBroader range of investors, secondary stocks
popular
Speculation Phase - ANSWEREveryone talks about market, trade on margin, public
involved, buy indiscriminately
3 Phases Bear Mkt (Dow Theory) - ANSWERDistribution, Panic, Lack of Buying
Interest
Distribution Phase - ANSWERPros selling to less sophisticated buyers
Panic Phase - ANSWERNews talks of the end of the bull market, margin calls
, Dow Theory Confirmation - ANSWERTwo of three major averages must confirm,
DJIA, TRAN, UTIL
Dow Theory Volume - ANSWERVolume goes w the Trend
Dow Theory Prices - ANSWERUses only closing prices
Dow Theory Trend - ANSWERPersists until a reversal is signaled
Trendline - ANSWERMost popular tool in technical analysis
Common Gap - ANSWERNo particular point or significance
Breakaway Gap - ANSWERInitial Gap on breakout or break down, usually on high
volume, does not have to fill
Exhaustion Gap - ANSWERFinal Gap in Trend. Confirms reversal
Runaway Gap - ANSWERGap that continues and confirms a trend
Spike - ANSWERSingle, volatile day, recognized a day later because range must be
lower
Spike "Local Top" - ANSWERSpike up that usually becomes resistance when met
again
Pivot Point (Buy) - ANSWERReversal, buy or close short when bottom occurs and
close is higher than previous close
Pivot Point (Sell) - ANSWERReversal, sell when pivot occurs and closes below
previous close
Caps/Cups - ANSWER3 Day price move where middle Day must be high (cap) or low
(cup) to signal reversal
Outside Day - ANSWERDay with higher high and lower low than previous day -
engulfing
Continuation Patterns - ANSWERTriangles, Flags, Pennants, Wedges
Symmetric Triangle - ANSWERContinuation pattern, beginning of Trend where there
is uncertainty
Descending Triangle - ANSWERContinuation Pattern, found in downtrends, price
rallies off support level but to lower highs
Triangle Size - ANSWERNo less than two weeks, no more than 3 months
