Question 1

The "Rising 3 Methods" candlestick pattern is: I. Bullish II. Bearish III. Long White Body followed by a series of smaller falling candles IV. Long Black Body followed by a series of smaller rising candles

Options :

A : I & III

B : I & IV

C : II & III

D : II & IV

Answer: A

Question 2

How might one detrend data to determine if a cycle exists?

Options :

A : Divide the current prices by a moving average of those prices

B : Create an oscillator that plots a standard deviation of the period lows

C : Apply volume weighting to both high and lows in the data

D : Plot a linear regression line through the data midpoin

Answer: A

Question 3

Counterattack lines are formed when:

Options :

A : a doji breaks a moving average

B : a dumpling top fails with an abandoned baby pattern

C : when opposite colored candles have the same close

D : When same-colored candles have the same close

Answer: C

Question 4

Which of the following are the three basic tenets of Elliott Wave Theory, in the CORRECT order of importance?

Options :

A : Price, momentum and volume

B : Price, pattern and volume

C : Waves, alternation and reversals

D : Pattern, ratio and time

Answer: D

Question 5

The Sharpe Ratio is defined as?

Options :

A : (expected return plus the risk free interest rate) divided by the standard deviation of returns

B : (expected return minus the risk free interest rate) divided by the standard deviation of returns

C : (expected return divided by the risk free interest rate) divided by the standard deviation of returns

D : (expected return times the risk free interest rate) divided by the standard deviation of returns

Answer: B

Free CMT-Level-II Mock Exam – Practice Online Confidently

Buying Options: