100+ Free CMT Level II Practice Questions
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A system's profit factor is defined as gross profit divided by gross loss. A system with $90,000 gross profit and $45,000 gross loss has a profit factor of what?
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Key Facts: CMT Level II Exam
170
Multiple-Choice Questions
CMT Association
150
Scored Questions
CMT Association
4 hours
Exam Duration
CMT Association
60-70%
Historical Pass Rate
CMT Program Context
$250
Enrollment Fee
CMT Association
Jun & Dec
Testing Windows
CMT Association
The CMT Level II exam has 170 multiple-choice questions, of which 150 are scored, completed in a single four-hour session delivered through Prometric and ProProctor. It covers the same knowledge domains as Level I but at greater depth, emphasizing analysis and application over recall across charting, trend, momentum, volume and breadth, intermarket, behavioral finance, cycles, quantitative methods, selection, system testing, risk management, and ethics. The CMT Association sets the passing standard each cycle rather than publishing a fixed raw percentage, and historical pass rates run roughly 60-70%. Active CFA charterholders can waive Level I and start at Level II. Exams are offered in June and December, with a roughly USD 650-1,050 Level II fee plus a one-time USD 250 enrollment fee.
Sample CMT Level II Practice Questions
Try these sample questions to test your CMT Level II exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1An analyst observes a head-and-shoulders top with a neckline at $52 and a head peak at $60. Applying the standard measured-move technique, what is the minimum downside price objective after a confirmed neckline break?
2When constructing a point-and-figure chart with a box size of 1 and a 3-box reversal, what minimum price move against the current column is required to trigger a reversal into a new column?
3A 14-period RSI reads 78 while price makes a higher high but RSI makes a lower high. Which condition is most directly indicated?
4On-Balance Volume (OBV) is rising steadily while price moves sideways in a tight range. According to classic volume analysis, this most likely signals what?
5Intermarket analysis traditionally holds that in a disinflationary environment, which relationship between bonds and stocks tends to dominate?
6Which behavioral bias best explains why traders hold losing positions too long and sell winners too early, as described in the disposition effect?
7A market analyst identifies a dominant 40-month cycle. According to the principle of summation, the cyclical low is expected to be most pronounced when which condition holds?
8In simple linear regression of a stock's returns on the market, the slope coefficient is 1.4 and the regression has an R-squared of 0.49. What is the correlation coefficient between the stock and the market (assuming positive relationship)?
9A relative-strength screen ranks securities by 6-month price performance versus a benchmark. A momentum-based selection strategy would prioritize which securities?
10When backtesting a trading system, which practice most directly guards against curve-fitting (overoptimization)?
About the CMT Level II Exam
CMT Level II is the second exam in the Chartered Market Technician Program and tests applied technical analysis through 170 multiple-choice questions (150 scored) in a single four-hour session, emphasizing analysis and application across charting, trend, momentum, volume, intermarket, behavioral finance, cycles, quantitative methods, system testing, risk management, and ethics.
Questions
170 scored questions
Time Limit
Four hours
Passing Score
CMT Association standard set each cycle; no fixed public raw percentage
Exam Fee
Approximately USD 650 (member) to USD 1,050 (non-member) plus a one-time USD 250 enrollment fee (CMT Association / Prometric)
CMT Level II Exam Content Outline
Chart and Pattern Analysis
Classical chart patterns, candlesticks, point-and-figure, gaps, measured moves, support and resistance, and pattern-based price objectives applied to analysis.
Trend Analysis
Trend identification, Dow Theory, moving averages, channels, ADX, parabolic SAR, market structure, and confirmation of primary and secondary trends.
Momentum and Oscillators
RSI, MACD, stochastics, rate of change, divergence analysis, overbought and oversold conditions, and momentum confirmation of price.
Volume, Breadth, and Sentiment
On-balance volume, money flow, advance-decline breadth, McClellan Oscillator, VIX, put/call ratio, COT, and contrarian sentiment extremes.
Intermarket Analysis
Relationships among stocks, bonds, commodities, and currencies, sector rotation, the yield curve, and inflation-sensitive intermarket linkages.
Behavioral Finance
Prospect theory, loss aversion, disposition effect, anchoring, overconfidence, herding, and behavioral drivers of trend persistence and reversals.
Cycle Analysis
Cycle identification, summation principle, seasonality, the presidential election cycle, Elliott Wave, Fibonacci, and spectral cycle methods.
Quantitative and Statistical Methods
Regression, correlation, hypothesis testing, volatility and annualization, the normal distribution, serial correlation, and the efficient market debate.
Selection and Decision Making
Relative-strength ranking, ratio charts, volume confirmation, diversification, and security selection from technical and portfolio perspectives.
System Design and Testing
Backtesting, in-sample and out-of-sample data, walk-forward and Monte Carlo analysis, curve-fitting, expectancy, profit factor, and drawdown.
Risk Management and Position Sizing
Fixed-fractional sizing, ATR and volatility stops, trailing stops, portfolio heat, risk of ruin, reward-to-risk, and the Kelly criterion.
Ethics
The CFA Institute Code of Ethics and Standards of Professional Conduct that all CMT Association members must follow, including material nonpublic information and fair presentation.
How to Pass the CMT Level II Exam
What You Need to Know
- Passing score: CMT Association standard set each cycle; no fixed public raw percentage
- Exam length: 170 questions
- Time limit: Four hours
- Exam fee: Approximately USD 650 (member) to USD 1,050 (non-member) plus a one-time USD 250 enrollment fee
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 II Study Tips from Top Performers
Frequently Asked Questions
How many questions are on the CMT Level II exam?
The CMT Level II exam has 170 multiple-choice questions, of which 150 are scored and 20 are unscored pretest items. Candidates complete all 170 in a single four-hour session.
What is the CMT Level II passing score?
The CMT Association sets the passing standard for each exam cycle rather than publishing a fixed raw percentage. Candidates should aim for consistent mastery across all knowledge domains instead of relying on a simple 70% rule.
What is the CMT Level II pass rate?
CMT Level II pass rates have historically run in roughly the 60-70% range across recent cycles. The CMT Association does not guarantee a fixed published figure, and rates can vary by window.
How much does CMT Level II cost in 2026?
The Level II exam fee is approximately USD 650 for CMT Association members and USD 1,050 for non-members, plus a one-time USD 250 CMT Program enrollment fee, before any local taxes.
Do I need to pass CMT Level I before Level II?
Yes. Candidates must pass CMT Level I before sitting Level II, unless they qualify for the CMT Level I waiver as an active CFA charterholder, which lets them start at Level II.
How is CMT Level II different from Level I?
Level II covers the same knowledge domains as Level I but tests them at greater depth, emphasizing analysis and application over recall. Questions require interpreting indicators, patterns, and scenarios rather than simply defining terms.
When is the CMT Level II exam offered?
The CMT Program offers Level II during two annual testing windows, in June and December, scheduled through Prometric test centers or ProProctor online proctoring.
Is CMT Level II all multiple choice?
Yes. CMT Levels I and II are entirely multiple-choice. The essay and constructed-response format applies only at Level III, the program's capstone exam.