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100+ Free CMT Level I Practice Questions

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2026 Statistics

Key Facts: CMT Level I Exam

132

Multiple-Choice Questions

CMT Program Guide 2026

120

Scored Items

CMT Program Guide 2026

2 hours

Exam Time

CMT Program Guide 2026

38%

Theory and History Weight

CMT Program Guide 2026

3%

Ethics Weight

CMT Program Guide 2026

$250

Program Enrollment Fee

CMT Association

The CMT Level I exam has 132 multiple-choice questions, of which 120 are scored and 12 are unscored pretest items, completed in a two-hour session. Official 2026 weightings are Theory and History 38%, Classical Techniques (Application) 33%, Advanced Techniques 26%, and Ethics 3%. The CMT Association sets a scaled passing standard near 70% and does not publish a fixed raw passing percentage or per-window pass rates. The exam is delivered at Prometric centers or through Prometric ProProctor remote proctoring, after a USD 250 program enrollment plus a Level I exam fee that varies by membership and registration window.

Sample CMT Level I Practice Questions

Try these sample questions to test your CMT Level I exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which two stock averages did Charles Dow begin publishing in the late 1800s and use as the foundation of Dow Theory?
A.The Industrial Average and the Railroad (Transportation) Average
B.The Industrial Average and the Utility Average
C.The Railroad Average and the Composite Average
D.The S&P 500 and the NASDAQ Composite
Explanation: Charles Dow created and published the Dow Jones Industrial Average and the Dow Jones Railroad Average (later the Transportation Average). Dow Theory rests on these two averages confirming each other.
2In Dow Theory, what is meant by 'confirmation'?
A.Both the Industrial and Transportation averages making new highs (or lows) in the same direction
B.A single average reaching an all-time high
C.Volume expanding on a rally day
D.A moving-average crossover signal
Explanation: Dow Theory confirmation requires both the Industrial and Transportation averages to move to new highs (or lows) in agreement. A move by one average not confirmed by the other is suspect.
3According to Dow Theory, the primary trend is composed of three phases. The phase in which informed, knowledgeable investors begin buying against pessimistic sentiment is called the:
A.Distribution phase
B.Public participation phase
C.Accumulation phase
D.Excess phase
Explanation: The accumulation phase occurs at the start of an uptrend when shrewd, informed investors buy while the public remains pessimistic. It is followed by public participation and finally distribution.
4The Efficient Markets Hypothesis (EMH) in its semi-strong form asserts that prices reflect:
A.All publicly available information
B.Only past price and volume data
C.All public and private (insider) information
D.Only information about dividends
Explanation: The semi-strong form of EMH holds that prices instantly reflect all publicly available information, implying neither technical nor fundamental analysis on public data can yield consistent excess returns.
5Technical analysis is most fundamentally premised on the idea that:
A.Price action discounts all known information and tends to move in trends
B.Markets are perfectly efficient and unpredictable
C.Only fundamental earnings data determine price
D.Past prices have no influence on future prices
Explanation: Technical analysis assumes price discounts everything, that prices move in trends, and that history tends to repeat due to market psychology. These premises justify studying price and volume.
6The Fibonacci ratio most commonly used as a retracement level, derived from dividing a term by the one that follows it in the sequence, is approximately:
A.0.382
B.0.500
C.0.618
D.0.786
Explanation: Dividing a Fibonacci number by the next number converges to 0.618, the inverse of the Golden Ratio (1.618). This 61.8% retracement is the most widely cited Fibonacci level.
7Behavioral finance attributes the tendency of investors to hold losing positions too long and sell winners too early to:
A.The disposition effect
B.Anchoring bias
C.Confirmation bias
D.The endowment effect
Explanation: The disposition effect describes investors' inclination to realize gains quickly while holding losers in hopes of breaking even, rooted in prospect theory's asymmetric attitudes toward gains and losses.
8A market participant who buys simply because prices are rising and others are buying, ignoring valuation, is exhibiting:
A.Herding behavior
B.Mean-reversion behavior
C.Contrarian behavior
D.Arbitrage
Explanation: Herding is the tendency to follow the crowd, amplifying trends and bubbles. Behavioral finance views herding as a key driver of momentum and overextended price moves.
9Prospect theory, developed by Kahneman and Tversky, proposes that investors:
A.Feel the pain of a loss more strongly than the pleasure of an equivalent gain
B.Are equally sensitive to gains and losses of the same size
C.Always act to maximize expected monetary value rationally
D.Ignore reference points when evaluating outcomes
Explanation: Prospect theory shows loss aversion: the disutility of a loss is roughly twice the utility of an equal-sized gain. This asymmetry helps explain many trading biases.
10For technical analysis to be effective, a market should have which characteristic?
A.Sufficient liquidity, free price discovery, and many participants
B.Low liquidity and infrequent trading
C.A single dominant participant controlling prices
D.Government-fixed prices
Explanation: Technical analysis works best in liquid markets with free price discovery and broad participation, where supply and demand are revealed through price and volume. Thin or manipulated markets distort signals.

About the CMT Level I Exam

CMT Level I is the first exam in the Chartered Market Technician Program and tests introductory concepts and definitions in technical analysis through 132 multiple-choice questions, of which 120 are scored, completed in two hours via Prometric or ProProctor.

Questions

132 scored questions

Time Limit

Two hours

Passing Score

Scaled standard set by the CMT Association near 70%; no fixed raw percentage is publicly guaranteed

Exam Fee

USD 250 one-time program enrollment plus a Level I exam fee that varies by membership and early/standard/late registration (CMT Association / Prometric)

CMT Level I Exam Content Outline

38%

Theory and History of Technical Analysis

Evolution of technical analysis, Dow Theory, efficient markets, market structure and instruments, Fibonacci, key concepts, and behavioral finance foundations.

33%

Classical Techniques (Application)

Chart types and construction, trend analysis, support and resistance, classical chart and candlestick patterns, internal and external indicators, volume, and cycles.

26%

Advanced Techniques

Statistical analysis, volatility, momentum oscillators, systematic and rules-based trading, system testing, cross-asset analysis, and principles of risk management.

3%

Ethics

CMT Association Code of Ethics and Standards of Practice, including conflicts of interest, client duties, market integrity, and prohibitions on misuse of nonpublic information.

How to Pass the CMT Level I Exam

What You Need to Know

  • Passing score: Scaled standard set by the CMT Association near 70%; no fixed raw percentage is publicly guaranteed
  • Exam length: 132 questions
  • Time limit: Two hours
  • Exam fee: USD 250 one-time program enrollment plus a Level I exam fee that varies by membership and early/standard/late registration

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CMT Level I Study Tips from Top Performers

1Prioritize Theory and History because at 38% it is the heaviest weighting; master Dow Theory, market structure, and behavioral finance thoroughly.
2Drill chart and candlestick pattern recognition until naming patterns and their implications is automatic.
3Learn the construction and interpretation of core indicators (RSI, MACD, stochastics, moving averages, Bollinger Bands, ATR) rather than memorizing formulas alone.
4Practice the statistics and risk-management material, since Advanced Techniques is over a quarter of the exam.
5Review the CMT Code of Ethics even though Ethics is only 3%, because those questions are usually straightforward points to secure.
6Rehearse with full two-hour, 132-question mock exams to build pacing of roughly 55 seconds per question.

Frequently Asked Questions

How many questions are on the CMT Level I exam?

The CMT Association states that Level I has 132 multiple-choice questions, of which 120 are scored and 12 are unscored pretest items. Candidates have two hours to answer all 132 questions.

What is the CMT Level I passing score?

The CMT Association applies a scaled passing standard, generally near 70%, rather than publishing a fixed raw percentage. The exact passing line is set by the Association for each administration.

What are the CMT Level I topic weightings?

Per the 2026 CMT Program Guide, Level I weightings are Theory and History 38%, Classical Techniques (Application) 33%, Advanced Techniques 26%, and Ethics 3%.

How is the CMT Level I exam delivered?

The exam is computer-based and delivered at Prometric test centers or through Prometric ProProctor remote proctoring, so candidates can test in person or online with a proctor.

How much does CMT Level I cost?

Candidates pay a one-time CMT Program enrollment fee of USD 250 plus a Level I exam fee that varies by CMT Association membership status and whether they register in the early, standard, or late window.

Do I need a degree to take CMT Level I?

No. There is no degree requirement to enroll in the CMT Program and sit for Level I. Work experience and membership requirements apply later when earning the CMT charter.

Is there a Practical Skills Module for CMT Level I?

No. CMT Level I is a single multiple-choice exam with no separate practical skills module; candidates simply complete the 132-question test within the two-hour limit.

Can I retake CMT Level I if I fail?

Yes. Candidates who do not pass may re-register and retake Level I in a later exam window, subject to the CMT Program's registration deadlines and applicable fees.