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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Theory and History | 7% | - Behavioral Finance Principles - Evolution of Technical Analysis - Key Concepts in Market Analysis |
| Topic 2: Ethics and Professional Standards | 3% | - Standards of Professional Conduct - CMT Code of Ethics |
| Topic 3: Advanced Techniques | 40% | - Statistical Analysis Methods - Systematic Trading Approaches - Risk Management Principles - Cross-Asset and Intermarket Analysis - Volatility Analysis and Measures |
| Topic 4: Application of Technical Analysis | 10% | - Model Evaluation and Implementation - Asset Allocation Using Relative Strength - Risk Assessment and Planning - Chart Interpretation for Entry/Exit Decisions |
| Topic 5: Classical Techniques | 40% | - Price and Volume Cycles - Internal and External Technical Indicators - Chart Types and Construction - Chart Pattern Recognition and Interpretation - Trend Analysis and Confirmation |
1. In 3-box point and figure charts,
A) Neither can be continuation patterns. They do not exist in Point and Figur
B) A double-bottom and double top can be continuation patterns
C) Only a double-top can be a continuation pattern
D) Only a double-bottom can be a continuation pattern
2. Which of the following would not be a violation of the Code of Ethics in a published research report or statement?
A) Inaccurate information
B) Statements which disparage the work of other analysts
C) Statements inconsistent with the accumulated knowledge of technical analysis
D) Estimates which are subject to change
3. What position does the MTA take on plagiarism?
A) Research reports which are not direct copies but use substantially the same language as other analysts work would be permissible
B) Other analysts work can be copied with permission in advance
C) Analysts can never copy other analysts work
D) If the author of the original work is deceased, this work cannot be copied since permission cannot be obtained
4. When using the Bar/Candle method to portray volume what is the relationship defined between price and volume using this method?
A) The price is dependent on the volume
B) It has a direct relationship between price and volume
C) It has no relationship between price and volume
D) It has an indirect relationship between price and volume
5. Which of the following is a general rule for trading futures?
A) The majority of capital should be committed to the strongest market since it is rare that more than two or more markets will experience a major move simultaneously
B) At least 50% of total equity should be dedicated to the market group with the strongest trend
C) Due to the fact that markets only trend 30% of the time, 100% of capital should be invested at all times
D) Total amount risked on any single trade should not exceed 5% of equity
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: D |
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