FREE CMT Level 1 Questions and Answers
When talking about Volume Statistics which of the following is not considered as a fact of Volume Statistics?
Explanation:
Volume measures and signals are commonly extracted from a shift in volume rather than from volume itself. Volume can be a measure of liquidity in security by itself, but it is not useful for price analysis. In every protection, the volume is normally different.
Which of the following facts is used to distinguish between a rising and a falling wedge pattern?
Explanation:
The declining coil has both lines headed down, with the bounded upward falling faster than the lower bound. In the future, as in a standard triangle, the lines will cross, and the nomenclature for the crossover and height is identical.
Which of the following is true regarding the price change that occurs due to high ad low-volume trends?
Explanation:
At high volume price shifts tend to occur in the direction of a trend, and price shifts at small volumes continue to occur in the wake of corrective market movements.
What is the possible outcome when the downward reversal will have a lesser slope than the underlying trend line?
Explanation:
The downward reversal would have a lower slope than the underlying trend line, which will ultimately follow the trend line if projected into the future. This new channel and trend line configuration is an ascending wedge. It indicates that sellers are a little more nervous than it implied before, and by default, that the trend line will soon split.
What is the condition for an upward accelerated trend regarding pattern analysis?
Explanation:
The support reversal points occur at rates higher than the expected trend line in an upward accelerated trend, and cause the trend line to be changed to a steeper slope.
Which of the following facts is not correct when talking about wedge patterns?
Explanation:
A wedge pattern is a pattern of triangles with both trend lines going in the same direction. A rising wedge has both borders heading upward, the lower border moving faster than the upper border.
Which of the following is not a fact regarding the Rising Wedges? Choose the best possible answer.
Explanation:
Rising wedges occur either during a lengthy downward price trend or after a climax upward. Some that take place during a downtrend tend to be very low rallies against the trend. As previously reported, they inevitably break to the downside again and start the downtrend. Declining wedges are almost the same pattern and only occur in the opposite direction under similar circumstances.
Which of the following statements is not an outcome of a market climax regarding pattern analysis?
Explanation:
Market equilibrium occurs when prices escalate. At these times, the underlying trend line is changed slowly at a steeper slope in the direction of prices. Prices. The support reversal points occur at rates higher than the expected trend line in an upward accelerated trend and trigger the trend line to be changed to a steeper slope.
Taking trading diamonds into consideration how do we determine the price objective?
Explanation:
The diamond formation, once properly defined, tends to have a fast-moving price run on the breakout. The price target is typically the distance traveled by the entry price to get to the gem. In general, a steep entrance is followed by a steep exit.
What is the outcome if a later rally within the channel fails to reach the channel line? Select the best possible outcome.
Explanation:
When a subsequent rally inside the channel fails to hit the channel line, the current channel line will have a lower slope than the underlying trend line from the latest downward reversal and the last downward reversal, which will ultimately follow the trend line when projected into the future.
According to Bulkowski what is the percentage of almost all declining and rising wedges to break out?
Explanation:
According to Bulkowski nearly all decreasing wedges (92%) break upwards, and most rising wedges (69%) break downwards.