Mixed Deck — All CMT Topics Flashcards
100 cards from real CMT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 20 Mixed Deck — All CMT Topics flashcards as text
What is the purpose of peer review in Chartered Market Technician intermarket analysis?
Answer: To have qualified experts evaluate research quality before publication
Peer review involves independent evaluation of research by qualified experts in the field, assessing methodology, validity, significance, and contribution to knowledge before publication.
What is a key benefit of implementing performance metrics in Chartered Market Technician portfolio management?
Answer: Providing measurable data to track progress and inform decision-making
Performance metrics provide objective, quantifiable data that helps track progress toward goals, identify areas for improvement, and support evidence-based decision-making.
A 'Harami' candlestick pattern occurs when:
Answer: The second candle's body is contained within the first candle's body
A Harami consists of a large candle followed by a smaller candle whose body fits entirely within the larger candle's body, suggesting a potential trend slowdown.
In Chartered Market Technician, what does "statistical significance" mean?
Answer: The result is unlikely to have occurred by chance alone (typically p < 0.05)
Statistical significance indicates that an observed result is unlikely to have occurred by random chance, typically when the p-value is less than 0.05 (5% probability of occurring by chance).
The principle of 'cycle synchrony' in Hurst's cycle analysis states that:
Answer: All cycles of different lengths tend to bottom simultaneously
Hurst's principle of synchrony states that cycles of all lengths tend to bottom at the same time, creating significant lows when multiple cycles align at their troughs.
If 300 shares traded at a certain price which of the following conclusions can be drawn from this given situation?
Answer: Traders would record four bars at that price
Explanation: If 300 shares were traded at a given price, the traders would record three shares bars to the price. A large number of bars at a given price showed that most operations took place at that level. From this chart, traders could determine the price at which the equalization of supply and demand, and thus the support and resistance zones.
Who developed Elliott Wave Theory after studying 75 years of stock market data in the 1930s?
Answer: Ralph Nelson Elliott
Ralph Nelson Elliott developed the theory bearing his name in the 1930s after extensive study of historical market data.
In Chartered Market Technician, what does "statistical significance" mean?
Answer: The result is unlikely to have occurred by chance alone (typically p < 0.05)
Statistical significance indicates that an observed result is unlikely to have occurred by random chance, typically when the p-value is less than 0.05 (5% probability of occurring by chance).
What is the fundamental accounting equation?
Answer: Assets = Liabilities + Equity
The fundamental accounting equation (Assets = Liabilities + Equity) is the foundation of double-entry bookkeeping, ensuring that the balance sheet always balances.
In Chartered Market Technician, what is sampling bias?
Answer: A systematic error where some members of a population are more likely to be selected than others
Sampling bias occurs when the method of selecting participants systematically favors certain characteristics over others, resulting in a sample that does not accurately represent the target population.
The 'Inverted Hammer' candlestick pattern at the bottom of a downtrend suggests:
Answer: Potential bullish reversal requiring confirmation
An Inverted Hammer at a downtrend low has a long upper shadow and small body, suggesting buyers attempted to push prices higher and a reversal may be forming pending confirmation.
In Chartered Market Technician, what is the purpose of a literature review in volume analysis?
Answer: To survey existing research and identify gaps that the current study addresses
A literature review surveys and synthesizes existing research on a topic, establishing what is already known, identifying gaps or inconsistencies, and providing context and justification for the current study.
In Chartered Market Technician, what does "statistical significance" mean?
Answer: The result is unlikely to have occurred by chance alone (typically p < 0.05)
Statistical significance indicates that an observed result is unlikely to have occurred by random chance, typically when the p-value is less than 0.05 (5% probability of occurring by chance).
What is a "control group" in Chartered Market Technician research?
Answer: A group that does not receive the experimental treatment, serving as a baseline comparison
The control group does not receive the experimental treatment or intervention, providing a baseline against which the experimental group's results can be compared to determine the effect of the treatment.
According to Dow Theory, which phase of a bull market is characterized by broad public participation and rising prices across all sectors?
Answer: Public participation phase
The public participation phase is the second stage of a Dow Theory bull market, where the majority of investors recognize the uptrend and actively buy, driving prices broadly higher.
According to Bulkowski what is the percentage of almost all declining and rising wedges to break out?
Answer: Almost all declining wedges (92%) break out upward, and most rising wedges (69%) break out to the downside
Explanation: According to Bulkowski nearly all decreasing wedges (92%) break upwards, and most rising wedges (69%) break downwards.
Which candlestick pattern is identified by a long lower shadow at least twice the length of the real body, appearing in a downtrend and signaling a potential reversal?
Answer: Hammer
The Hammer forms in a downtrend with a small real body and a long lower shadow, showing that buyers overcame selling pressure during the session.
In Chartered Market Technician, what is the primary function of strategic planning in portfolio management?
Answer: To set long-term goals and determine the best approach to achieve them
Strategic planning involves defining the organization's direction, making decisions on allocating resources, and establishing priorities to achieve long-term objectives.
What is the relationship between theory and practice in Chartered Market Technician market indicators?
Answer: Theory provides the foundation and framework that guides effective practical application
Theory and practice are complementary: theoretical knowledge provides the conceptual framework and understanding that guides effective, evidence-based practical application in professional settings.
In Chartered Market Technician, what is the purpose of an internal audit?
Answer: To evaluate and improve risk management, control, and governance processes
Internal audits independently evaluate the effectiveness of risk management, internal controls, and governance processes, providing recommendations for improvement and ensuring compliance.