CMT Level II Practice Test
Build your confidence for CMT Level II. Practice the concepts, understand the answers, and strengthen your knowledge one question at a time.
Try a sample questionExam overview and details
The CMT Level II examination is the second of three levels in the Chartered Market Technician certification program, administered by the CMT Association. This exam rigorously tests a candidate's ability to apply intermediate-level technical analysis concepts and methodologies to real-world market scenarios. It moves beyond the foundational knowledge of Level I to focus on the practical application of technical tools, including advanced chart pattern recognition, statistical analysis, and intermarket relationships. The exam consists of 42 multiple-choice questions that assess both theoretical understanding and analytical proficiency. Successful candidates demonstrate competency in evaluating market data, constructing and testing trading systems, and applying behavioral finance principles to technical analysis. This level is designed for finance professionals, traders, analysts, and portfolio managers seeking to validate their technical skills and advance their careers in markets where price action and trend analysis are critical.
Sample Questions
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A CMT Level II candidate is reviewing a large-cap growth index over three quarters; realized volatility has doubled from its trailing one-year median. An analyst publishes a bullish technical report on a thinly traded stock while her firm is trying to win advisory business from the issuer. The chart work is reasonable, but the relationship is not disclosed. What is the primary ethics issue?
A CMT Level II candidate is reviewing a front-month crude oil contract over sixteen weeks; volume expands on declines but contracts on rebounds. A system optimized on 2018-2022 data performs well there but loses money in 2023-2024. The developer then repeatedly tweaks parameters using 2023-2024 until performance improves. What is the main risk?
A CMT Level II candidate is reviewing a software sector ETF over eleven months; volume expands on declines but contracts on rebounds. A P&F base spans eight columns across its count line, the box size is 1.50, and the reversal amount is three boxes. Which price-objective method is being applied?
A CMT Level II candidate is reviewing a high-yield credit ETF over twenty-six weeks; a central-bank meeting and earnings revisions are adding noisy headlines. A daily return series has frequent small losses and several extreme gap losses far beyond a normal model's expectation. What statistical concern is most important for risk modeling?
A CMT Level II candidate is reviewing a semiconductor leader over nine months; the latest pullback held above the prior breakout level. A currency ETF trades in its narrowest Bollinger Band width in eighteen months. Price closes above the upper band with rising volume, while ATR begins to turn up. What is the best interpretation?
Exam insights and study advice
Mastering the material in CMT Level II provides a tangible, practical edge in financial markets. It equips professionals with a systematic framework for evaluating asset price movements, managing risk, and identifying trading opportunities beyond fundamental data. In real-world application, this knowledge allows for the development of disciplined, rules-based trading and investment strategies, helps in timing entry and exit points, and fosters an objective mindset to counter emotional decision-making. The credential signals to employers and clients a verified, expert-level competency in a specialized and sought-after analytical discipline.
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What this exam covers
Use the published domain weights to plan your study. Practice results do not predict your certification exam score.