Question 1

Which of the following is NOT true in chart interpretation:

Options :

A : A price chart is a representation of human behavior

B : The goal is to find consistent, reliable and logical patterns

C : Chart patterns can be caused by commonly used trading techniques

D : The behavioral aspects of prices are irrational

Answer: D

Question 2

This chart type integrates volume directly into the price bar:

Options :

A : Equivolume

B : VWOP

C : Renko

D : Ichimoku Cloud

Answer: A

Question 3

Which of the following is the BEST volume indicator for analysis of futures trading?

Options :

A : Open interest

B : Contract volume

C : Total volume

D : Breadth

Answer: C

Question 4

Which of the following are true of the concepts of divergence and confirmation in technical analysis

Options :

A : They are opposite concepts

B : Confirmation has a valid technical interpretation but in the case of divergence, no valid conclusion can be drawn

C : Confirmation indicates a likely change in trend since all technical indicators are in agreement

D : Divergence indicates continuation in trend since different technical indicators do not agree

Answer: A

Question 5

Which of the following is true of the separating lines pattern?

Options :

A : The top of the upper shadow of one candle is at the same price as the bottom of the lower shadow of the other candle

B : The opening price of the second candle equals the opening price of the first candle

C : The two candles have the same color

D : It is a reversal pattern

Answer: B

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