| Domain | Weight | Key Topics | |--------|--------|-------------| | | 10% | Dow Theory, efficient market hypothesis vs. technical analysis, behavioral finance basics | | Markets & Data | 10% | Types of orders, bid-ask spread, volume, open interest, market indicators | | Chart Construction | 10% | Bar, candlestick, line charts; logarithmic vs. arithmetic scales; time frames | | Trend Analysis | 15% | Trendlines, channels, support/resistance, polarity principle | | Pattern Recognition | 15% | Reversal (head & shoulders, double tops/bottoms) and continuation patterns (triangles, flags) | | Candlestick Analysis | 10% | Single/multiple candlestick patterns (doji, engulfing, harami) | | Indicators & Oscillators | 15% | Moving averages, RSI, MACD, stochastic, Bollinger Bands, divergences | | Volume & Breadth | 10% | On-balance volume (OBV), accumulation/distribution, advance-decline line | | Ethics & Professional Standards | 5% | CMT Association Code of Ethics, soft dollars, research independence |
Before diving into practice strategies, it is vital to understand what you are up against. The CMT Level 1 exam is an approximately 4-hour session consisting of multiple-choice questions. It covers a vast breadth of topics, ranging from the basic tenets of Dow Theory to complex quantitative methods and intermarket analysis. cmt level 1 practice exam
As you finish reading a chapter or a specific section (e.g., Japanese Candlestick Charting), seek out practice questions specifically related to that topic. This reinforces immediate recall. Spaced repetition is key here. If you study candlesticks in February, you must quiz yourself on them again in March and April to retain the information. | Domain | Weight | Key Topics |