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CMT Level 2 Exam With 100% Correct And Verified Answers 2025, Exams of Advanced Education

Africa Nazarene UniversityAdvanced Education

CMT Level 2 Exam With 100% Correct And Verified Answers 2025 Charts - Correct Answer-Representation of human behavior Gann's Grand Rush - Correct Answer-Final move before a collapse or sell off before a rally Importing - Correct Answer-Selling/Weaker Dollar Exporting - Correct Answer-Buying/Strong Dollar Consumer Confidence - Correct Answer-How public feels about spending money Principle of Dow Theory - Correct Answer-Average Discounts Everything

Typology: Exams

2024/2025

Available from 06/11/2025

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CMT Level 2 Exam With 100% Correct
And Verified Answers 2025
Charts - Correct Answer-Representation of human behavior
Gann's Grand Rush - Correct Answer-Final move before a collapse or sell off before a
rally
Importing - Correct Answer-Selling/Weaker Dollar
Exporting - Correct Answer-Buying/Strong Dollar
Consumer Confidence - Correct Answer-How public feels about spending money
Principle of Dow Theory - Correct Answer-Average Discounts Everything
Three classifications of trends - Correct Answer-Primary, Secondary, Minor
Primary Trend - Correct Answer-Years
Secondary Trend - Correct Answer-Months/Weeks
Minor Trend - Correct Answer-Days
3 Phases Bull Mkt (Dow Theory) - Correct Answer-Accumulation, increase volume,
Specualtion
Accumulation Phase - Correct Answer-Cautious investors, buy safe, good value stocks -
mostly high yield and utilities
Increased Volume Phase - Correct Answer-Broader range of investors, secondary
stocks popular
Speculation Phase - Correct Answer-Everyone talks about market, trade on margin,
public involved, buy indiscriminately
3 Phases Bear Mkt (Dow Theory) - Correct Answer-Distribution, Panic, Lack of Buying
Interest
Distribution Phase - Correct Answer-Pros selling to less sophisticated buyers
Panic Phase - Correct Answer-News talks of the end of the bull market, margin calls
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Download CMT Level 2 Exam With 100% Correct And Verified Answers 2025 and more Exams Advanced Education in PDF only on Docsity!

CMT Level 2 Exam With 100% Correct

And Verified Answers 2025

Charts - Correct Answer-Representation of human behavior Gann's Grand Rush - Correct Answer-Final move before a collapse or sell off before a rally Importing - Correct Answer-Selling/Weaker Dollar Exporting - Correct Answer-Buying/Strong Dollar Consumer Confidence - Correct Answer-How public feels about spending money Principle of Dow Theory - Correct Answer-Average Discounts Everything Three classifications of trends - Correct Answer-Primary, Secondary, Minor Primary Trend - Correct Answer-Years Secondary Trend - Correct Answer-Months/Weeks Minor Trend - Correct Answer-Days 3 Phases Bull Mkt (Dow Theory) - Correct Answer-Accumulation, increase volume, Specualtion Accumulation Phase - Correct Answer-Cautious investors, buy safe, good value stocks - mostly high yield and utilities Increased Volume Phase - Correct Answer-Broader range of investors, secondary stocks popular Speculation Phase - Correct Answer-Everyone talks about market, trade on margin, public involved, buy indiscriminately 3 Phases Bear Mkt (Dow Theory) - Correct Answer-Distribution, Panic, Lack of Buying Interest Distribution Phase - Correct Answer-Pros selling to less sophisticated buyers Panic Phase - Correct Answer-News talks of the end of the bull market, margin calls

Dow Theory Confirmation - Correct Answer-Two of three major averages must confirm, DJIA, TRAN, UTIL Dow Theory Volume - Correct Answer-Volume goes w the Trend Dow Theory Prices - Correct Answer-Uses only closing prices Dow Theory Trend - Correct Answer-Persists until a reversal is signaled Trendline - Correct Answer-Most popular tool in technical analysis Common Gap - Correct Answer-No particular point or significance Breakaway Gap - Correct Answer-Initial Gap on breakout or break down, usually on high volume, does not have to fill Exhaustion Gap - Correct Answer-Final Gap in Trend. Confirms reversal Runaway Gap - Correct Answer-Gap that continues and confirms a trend Spike - Correct Answer-Single, volatile day, recognized a day later because range must be lower Spike "Local Top" - Correct Answer-Spike up that usually becomes resistance when met again Pivot Point (Buy) - Correct Answer-Reversal, buy or close short when bottom occurs and close is higher than previous close Pivot Point (Sell) - Correct Answer-Reversal, sell when pivot occurs and closes below previous close Caps/Cups - Correct Answer-3 Day price move where middle Day must be high (cap) or low (cup) to signal reversal Outside Day - Correct Answer-Day with higher high and lower low than previous day - engulfing Continuation Patterns - Correct Answer-Triangles, Flags, Pennants, Wedges Symmetric Triangle - Correct Answer-Continuation pattern, beginning of Trend where there is uncertainty Descending Triangle - Correct Answer-Continuation Pattern, found in downtrends, price rallies off support level but to lower highs

Passive Investors - Correct Answer-Buy and hold for long term. Minimize costs, fees and taxes. Passive investments - Correct Answer-Index mutual funds, ETF's Active Investors - Correct Answer-Seek to outperform market. More active. Incur higher costs. Categories of Active Investors - Correct Answer-Relative return and Absolute return Relative return vehicles - Correct Answer-Equity mutual funds, student investment funds. Performance measured v a benchmark Absolute return - Correct Answer-Less risky but usually lower returns than benchmark. Equity hedge funds, long-short funds Efficient Market - Correct Answer-Securities prices are thought to reflect all information that is relevant regarding stocks valuation all the time. Confirmation Error - Correct Answer-Investor puts too much weight on info that confirms prior opinions, but under weights evidence that contradicts prior opinion Extrapolation Error - Correct Answer-Investors assume current and recent conditions will prevail into the future, causing them to ignore new evidence of changing circumstances Sharpe Ratio - Correct Answer-Risk measurement, expected rate of return minus risk free interest rate divided by standard deviation of annualized volatility Treynor Ratio - Correct Answer-Risk measurement, annualized return minus risk free return divided by beta Stress Test - Correct Answer-Used to test Value at Risk performance under extreme cases Intraday Intensity - Correct Answer-Uses distribution of daily trading range to create new indicator Correlation Coefficient - Correct Answer-Measures strength and direction of the relationship between two markets Tick Volume - Correct Answer-Number of recorded price changes during a particular time interval Value at Risk (VAR) - Correct Answer-Calculated by finding the probability of loss of the current market positions based on past market movements

A/D Line - Correct Answer-Tracks degree of mass participation in rallies and declines Implied Volatility - Correct Answer-Risk measure that is an estimation of a price move in either direction Harmonics - Correct Answer-Small cycle part of s larger cycle Synchronized Cycle - Correct Answer-Peaks and valleys occur at the same time Business Cycle - Correct Answer-8.6 years or 4 years from top to bottom Kondratieff Wave - Correct Answer-54 year cycle defined by major events like wars Presidential Cycle - Correct Answer-Year 3 strongest, followed by reasonably strong election year, 2 yrs after returns below average Phasing - Correct Answer-Synchronizing of moving averages to represent cycles Money Flow Index - Correct Answer-Simple variation of OBV in that it uses high, low and close instead of only close On Balance Volume (OBV) - Correct Answer-Assumes on up days all Volume equals buyers, down days all Volume equals sellers Force Index - Correct Answer-Change in price multiplied by daily volume Trading the Force Index - Correct Answer-Uses 13 day ma, smoothed w a 2 day ma. Buy when 2 day is negative in an uptrend, sell positive in a downtrend. Buy when 13 day crosses above 0 and sell when crosses below. Accumulation Distribution Indicator - Correct Answer-Volume indicator that compares strength of the close compared to the open divided by trading range. Also called money flow. Money Flow - Correct Answer-Compares strength of the close with the open divided by the trading range. Intraday Intensity - Correct Answer-Volume indicator that uses the daily trading range Sibbett's Demand Index - Correct Answer-Smoothes volume by using activity of the last ten days Avg True Range (ATR) Channels - Correct Answer-Measures volatility by placing lines above and below moving averages