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  1. Home
  2. CMT Association Certification
  3. CMT-Level-I Exam
  4. CMTAssociation.CMT-Level-I.v2026-02-07.q111 Dumps
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Question 26

In 3-box reversal Point and Figure charts double:

Correct Answer: C
Detailed Explanation:
In Point and Figure, a Double Top Breakout is a buy signal, and a Double Bottom Breakdown is a sell signal.
If these occur in the direction of the trend (e.g., a double top breakout during an uptrend), they act as continuation patterns49.
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Question 27

What is the measuring objective for flags and pennants on bar charts?

Correct Answer: A
Detailed Explanation:
Flags and Pennants are "half-mast" patterns. The target is calculated by measuring the pole (distance from the start of the trend to the first reversal) and adding that entire distance to the breakout price20.
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Question 28

A method to detrend data to determine if a cycle exists is to:

Correct Answer: C
Detailed Explanation:
One of the most common methods to detrend price data is to divide the current price by a centered moving average. This removes the trend component and leaves a percentage oscillator that highlights the cyclical fluctuations above and below the trend.
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Question 29

Volume should diminish during the price swings within a triangular pattern:

Correct Answer: A
Detailed Explanation:62
As the trading range narrows within a triangle and uncertainty increases, traders step to the sidelines. This results in a distinctive drop-off in volume as the pattern progresses towa63rd the apex.
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Question 30

_______ is also called the presidential cycle.

Correct Answer: B
Detailed Explanation:
Note: In standard economic cycle theory, the Kitchin cycle is ~40 months (3-4 years), which closely matches the 4-year US Presidential term. Therefore, in the context of this specific exam source, the Kitchin cycle is associated with the Presidential cycle.
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