CMT Association Updated CMT-Level-II Exam Questions and Answers by bradley

Confirmation between price action and indicator; the ongoing pullback can be bought.

Divergence between price action and indicator; suggests exiting of long positions.

Divergence between price action and indicator; can initiate shorts at current levels.

Can initiate long positions at current price level; breadth bottomed out at the same level as the pullback in October 2014.

Trendline analysis can be used with MACD

MACD crossover rules are different than other crossover rules

MACD histograms are best used to initiate new positions contrary to the price trend

When the slower MACD line is above the faster line, the MACD histogram will be above zero

There must be a reason for its existence and it must have regular intervals between peaks

There must be confidence that the cycle will continue and it must be synchronized with another cycle

There must be a reason for its existence and confidence that it will continue

There must be a way to forecast it and it must be synchronized with another cycle

It requires an 80% gain to break even

It requires a 100% gain to break even

It requires a 90% gain to break even

It requires a 70% gain to break even