CMT (Level 1) Preparatory
COURSE HIGHLIGHT
CMT is an upcoming globally recognized qualification, widely accepted in Indian market technician
corners. It is a certification process in which candidates are required to demonstrate their proficiency in
a broad range of technical analysis subjects. Administered by the Accreditation Committee of the Market
Technicians Association (MTA), Inc., U.S., the program consists of three levels:
Level 1 - multiple choice exam; Level 2 - also a multiple choice exam; Level 3 - the essay portion of the
exam.
A CMT gets membership with MTA which allows the individual to use the CMT Charter after some years of
experience.
The Chartered Market Technician (CMT) designation is the culmination of a certification process in which
candidates are required to demonstrate proficiency in a broad range of technical analysis of the financial
markets. It is made up of an educational component, an experience requirement, an ethics requirement
and a membership requirement.
Financial Corridors CMT preparatory class will guide and prepare students for the Level 1 Chartered
Market Technicians (CMT) exam.
The Course contents will include:
Definition of Technical Analysis
Types of Charts
Dow Theory
Trends
Indicators Leading and Lagging
Chart Pattern Analysis
Short Term
Patterns Japanese Candlesticks
Measuring Market Strength
Retracement
Money management
Trend Confirmation - Volume
Open Interest and Price
Sentiment Analysis
Temporal Patterns and Cycles
Point and Figure
Introduction to Elliot Wave
Fibonacci Analysis
Inter-market Analysis
Efficient Market Hypothesis & Behavioral Finance considerations
Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition
Kirkpatrick, Charles D. and Dahlquist, Julie R.: Technical Analysis The Complete Resource for Financial Market
Technicians
Pring, Martin J.: Technical Analysis Explained, 4th Edition
Jeremy du Plessis, The Definitive Guide to Point and Figure
Frost, A.J. and Prechter, Robert R., Elliott Wave Principle, Tenth Edition
Kaufman, Perry J., New Trading Systems and Methods, 4th Edition
Nison, Steve, Japanese Candlestick Charting Techniques, 2nd Edition
Pring, Martin J., Investment Psychology Explained
Aronson, David R.: Evidence-Based Technical Analysis
Brown, Constance M., Technical Analysis for the Trading Professional
Murphy, John J., Intermarket Analysis: Profiting From Global Market Relationships
Shiller, Robert J., Irrational Exuberance, 2nd Edition
Time Limit:
Cost:
2 hours and 15 minutes
$250, plus a program registration fee of $250
Number of Questions:
120, plus 12 "pre-test" questions
Format: Multiple Choice
Exam Date(s):
Twice a year in April/May and October
Certificate Chartered Market Technician (and shortened C.M.T) is an
international license granted by The Market Technician Association for those
interested in learning technical analysis, CMT professional license is supported by
the U.S. stock exchange SEC and NASDAQ.
Prepare for Level I of the Chartered Market Technician (CMT) exam. Our
comprehensive program is designed to maximize your chances for success. In
addition, you will be guided by our expert instructors who have many years of
experience managing Wall Street funds. Unlike other review courses that merely
show technical principles, you will be taught to apply the material learned and
attempt to create and innovate profitable investing and trading strategies. You will
also discuss current market situations in the bond, commodity, currency, equity,
futures and options markets. Sample problems from past actual market charts will
also be discussed, and recommended readings from leading textbooks will be listed
for each section. You will also be provided with one of the textbooks required for the
exam.
CMT Examination Preparation/Technical Analysis - Day
Prepare for Level I of the Chartered Market Technician (CMT) exam. Our comprehensive
program is designed to maximize your chances for success. In addition, you will be guided by
our expert instructors who have many years of experience managing Wall Street funds. Unlike
other review courses that merely show technical principles, you will be taught to apply the
material learned and attempt to create and innovate profitable investing and trading strategies.
You will also discuss current market situations in the bond, commodity, currency, equity, futures
and options markets. Sample problems from past actual market charts will also be discussed, and
recommended readings from leading textbooks will be listed for each section. You will also be
provided with one of the textbooks required for the exam.
"John is an extremely knowledgeable instructor."
"The class included detailed discussions of the topics using current market examples."
Target Audience
Portfolio managers, traders, asset allocators, behavioral economists, strategists, finance
professionals, hedge funds, and those wishing to take the CMT exam.
Learning Objectives
Students will be able to:
Appreciate key technical analytical approaches to investing
Differentiate between fundamental and technical analysis
Explain the role of behavioral finance and technical analysis
Describe the ethical and professional standards expected in technical analysis
Identify reversal and continuation patterns
Set measurement objectives for potential profits
Adjust technical techniques to accommodate both trading and long-term investment
objectives
Use intermarket analysis, statistical and probability analysis
Take current investment situations in the stock, bond, and commodity markets and
attempt to achieve hands-on profits with technical analysis
Understand the role of quantitative techniques and artificial intelligence programs in
technical analysis
Utilize derivatives in technical strategies
Be prepared for the requirements of the Market Technician's CMT Level 1 exam, as well
parts of Level 2 and 3
Course Syllabus
Introduction to Technical
Analysis/Reversal/Continuation Patterns
History of Technical Analysis
Basics of Technical Analysis
Chart Construction,
Arithmetic/Logarithmic
Supply/Demand Philosophy
Dow Theory, Old and New
Head and Shoulders
Triangles, Wedges
Rectangles, Pennants
Measurement Rules
Double/Triple Tops and Bottoms
Diamonds, Climaxes
Cases
Relative Strength and Volume
Relative Strength
Intermarket continued
Volume: OBV, A/D, CLV, and other
Trend Analysis/Momentum
Definition of Trends
Speedlines, Fans, Channels
Support/Resistance
Saucers, Gaps
Artificial Intelligence uses in technical
analysis, quant tools, backtesting,
multicollinearity, outside vendors
Introduction to intermarket analysis:
bonds/stocks, commodities/dollar,
business cycle and industry groups,
strategies
Algorithmic trading
Moving averages, double, triple
Envelopes, Bollinger bands
ROC, MACD, RSI, other stochastics
Trading: day, swing, asset allocation,
investing
Cases
Point and Figure and Gann; Elliott Wave
Theory
Point and figure construction methods
Reversal criteria
Measurement tools, such as horizontal,
measures
vertical, pole
Tick volume, TRIN
GANN, Wyckoff
Money flow
Elliott Wave: characteristics and
measurement objectives
The arms index
Patterns and ratio aspects
Put/Call, CDS
Fibonacci numbers
Introduction to option strategies with
technical analysis
Cases
Statistical and probability concepts
Cases
Cycles/Sentiment and Behavioral
Types of cycles: including
Kondratieff, Kitchin and others
Japanese Candlesticks and
Ethics/Professional Management
Candle types
Cycles concepts: summation,
harmonicity, synchronicity,
proportionality
Candle sequences
Blending with western charts
Classifications
Use with other technical indicators
Intensity, continuation, reversal types special names, such as Marubozu,
Spinning Tops, Doji, Dragon Fly,
Hamari, Hanging Man, etc.
Creation of technical patterns with
cycles
Blending/engulfing
Bubbles - USA, Japan, Saudi Arabia,
China, real estate, etc.
Support/resistance
Candles and traditional charts
Sentiment surveys: traders and
investors
Ethics and professionalism
Sentiment indicators: levels, money
flows, supply/demand, fed model,
TED, fear/greed measures, CDS
measures
Portfolio management
Cases
Put/call ratio
Short index
Special statistical and portfolio theory
appendix
Insider activity
Margin debt
TED, VIX
New indicators
Limits and uses
Behavioral concepts
What is the CMT?
The Chartered Market Technician (CMT) Program is a certification process in which candidates are
required to demonstrate proficiency in a broad range of technical analysis subjects. Administered by
the Accreditation Committee of the Market Technicians Association (MTA), Inc., the Program consists
of three levels. CMT Level 1 and CMT Level 2 are multiple choice exams while CMT Level 3 is in essay
form.
The objectives of the CMT Program are:
To guide candidates in mastering a professional body of knowledge and in developing
analytical skills;
To promote and encourage the highest standards of education; and
To grant the right to use the professional designation of Chartered Market
Technician (CMT) to those members who successfully complete the Program and agree to abide by the
MTA Code of Ethics.
In order to be granted your CMT designation, you must meet the following requirements:
Successful completion of all three (3) levels of the CMT Exam.
Have obtained 'Member Status' within the MTA.
Have been gainfully employed in a professional analytical or investment
management capacity for a minimum period of three (3) years and must be regularly engaged in
this capacity at the time of successfully passing all three (3) levels of the CMT Exam.
Q. What is the format of the exams?
Level 1 132 multiple choice questions
Level 2 160 multiple choice questions
Level 3 essay the entire exam is worth 240 points and candidates are allowed 240
minutes, so candidates should pace their progress so that they do not spend too much time on
minor questions and so that they do allow time for more time consuming questions.
Q. What is the length of the exams?
Level 1 2 hours Level 2 4 hours Level 3 4 hours
Q. What is required of the candidate in the exams?
Level 1 Primarily definitions, this exam is designed to measure basic, entry-level
competence and tests concepts such as terminology, charting methods and ethics.
Level 2 Will include some definitions but will focus on applications of Technical Analysis.
Candidates should understand ethics and more complex theories (e.g., Dow Theory, Elliott
Wave, intermarket, etc.).
Level 3 Tests candidates competency in ethics and in rendering technical opinions
integrating multiple aspects of technical analysis. Essay responses should be of the quality of
technical research published by practicing CMT charterholders.
To know more, pls visit www.mta.org
Our course on Technical Analysis has been designed with a dual objective1. To enable a professional to strike the best of trades where the odds are heavily biased in favor of
success.
2. To have requisite skills for cracking the CMT exams, all 3 levels.
