Cmt Program

CHARTERED MARKET TECHNICIAN

Jeanette Young, CFP, CMT

MARKET TECHNICIANS ASSOCIATION

CMT EXAMS

• There are three levels:– Level one is definitions– Level two is definitions and applications– Level three is application


CMT EXAMS

• Ethics are tested on all levels of the exam.• Level one and level two are multiple choice

exams. • Level one is 120 to 132 questions.• Level two is 150 to 160 questions.• Level three is all essay.


Level One

• CMT Level 1 Exam tests the candidates’ knowledge of six basic areas of technical analysis:

• 1) Terminology of technical analysis2) Methods of charting3) Determination of price trends/basics of pattern recognition4) Establishing price targets5) Equity market analysis6) Applying technical analysis to bonds, currencies, futures and options



MTA CODE OF ETHICS

• You need to know this one page code of ethics and understand its application to real world situations.


BOOKS

• Pring, Martin J.: Technical Analysis Explained, 4th Edition, McGraw Hill Book Company, New York, NY, c. 2001, ISBN 0-07-138193-7• Chapters: 2 thru 20, and 22 thru 31


Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition, CRC Press, Taylor & Francis Group, Boca Raton, Florida, c2007, ISBN 10:0-8493-3772-0

• Chapters: 1 thru 16.1, 38 – 39, and 40 thru 43


BOOKS CONTINUED

BOOKS CONTINUED

• Kirkpatrick, Charles D. and Dahlquist, Julie R.: Technical Analysis The Complete Resource for Financial Market Technicians, Pearson Education, Inc., Upper Saddle River, New Jersey 07458, c. 2006, ISBN 0-13-153113-1

• Chapters: 1 thru 6, 8 – 9, 11 – 12, 14 thru 21 and chapter 23



LEVEL TWO BOOKSLEVEL TWO BOOKS

You are responsible for all previously assigned readings.

This is a cumulative exam.


LEVEL TWO

• At this level you are responsible for:– Theory – Basic application of concepts and techniques– Application of TA– Use of indicators– Overall market analysis– Length of exam is 4 hours


MTA CODE OF ETHICS



BOOKS

• Kirkpatrick, Charles D. and Dahlquist, Julie R.: Technical Analysis The Complete Resource for Financial Market Technicians, Pearson Education, Inc., Upper Saddle River, New Jersey 07458, c. 2006, ISBN 0-13-153113-1

• Chapters: 7, 10, 13 thru 21, & 23• Appendix A


BOOKS CONTINUED

Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition, CRC Press, Taylor & Francis Group, Boca Raton, Florida, c2007, ISBN 10:0-8493-3772-0

• Chapters: 17, 17.1, 17.2, 27, & 28


BOOKS CONTINUED

• Pring, Martin J.: Technical Analysis Explained, 4th Edition, McGraw Hill Book Company, New York, NY, c. 2001, ISBN 0-07-138193-7• Chapters: 16, 19, 21, 25, & 28


BOOKS CONTINUED

• Kaufman, Perry J., New Trading Systems and Methods, 4th Edition, John Wiley & Sons, Inc., c. 1998, ISBN 0-471-26847-X• Chapters: 1 thru 14, 21, and 23


BOOKS CONTINUED

• Nison, Steve, Japanese Candlestick Charting Techniques, 2nd Edition, New York Institute of Finance, c. 2001, ISBN 0-7352-0181-1

• Chapters: 1 thru 9


BOOKS CONTINUED

• Frost, A.J. and Prechter, Robert R., Elliott Wave Principle, Tenth Edition, New Classics Library, Gainesville, GA c. 1978-2005 ISBN 0-932750-75-3



BOOKS CONTINUED

Wilkinson, Chris: Technically Speaking, Traders Press Inc., c. 1997, ISBN 0-934380-39-2

Chapter: Phil Roth pages 323-350


BOOKS CONTINUED

• Pring, Martin J., Investment Psychology Explained, John Wiley & Sons, Inc., c. 1993, ISBN 0-471-13300-0

• ALL CHAPTERS, THE ENTIRE BOOK


BOOKS CONTINUED

• Aronson, David R: Evidence-Based Technical Analysis, John Wiley & Sons, Inc., Hoboken, New Jersey, c. 2007, ISBN-13: 978-0-470-00874-4




LEVEL THREE BOOKSLEVEL THREE BOOKS

You are responsible for all previously assigned readings.

This is a cumulative exam.


LEVEL THREE

• At this level you are responsible for:– You are asked to become an analyst, strategist,

portfolio manager, etc. for the duration of this exam.– You should be able to demonstrate your proficiency

on various indicators, concepts and intermarket relationships.

– You must be able to write clearly and thoughtfully expressing your recommendations and support for those recommendations.

– Length of exam is 4 hours, or 240 minutes.


MTA CODE OF ETHICS



BOOKS

• Brown, Constance M., Technical analysis for the Trading Professional, McGraw-Hill, c. 1999, ISBN 0-07-0120625



BOOKS CONTINUED

• Murphy, John J., Intermarket Analysis: Profiting From Global Market Relationships, John Wiley & Sons Inc., c. 2004, ISBN 0-471-02329-9



BOOKS CONTINUED

• Nison, Steve, Japanese Candlestick Charting Techniques, 2nd Edition, New York Institute of Finance, c. 2001, ISBN 0-7352-0181-1



BOOKS CONTINUED

• Shiller, Robert J., Irrational Exuberance, 2nd Edition, Princeton University Press, c 2005, ISBN 0-691-12335-7

• ALL CHAPTERS


BOOKS CONTINUED

• Frost, A.J. and Prechter, Robert R., Elliott Wave Principle, Tenth Edition, New Classics Library, Gainesville, GA c. 1978-2005 ISBN 0-932750-75-3

• ALL CHAPTERS, THE ENTIRE BOOK


MTA CODE OF ETHICS


• If you do not pass the ethics portion of the Level 3 exam, you will fail the exam.


WHAT YOU NEED TO KNOW• Be able to differentiate between an up market and a down

market.• Understand oscillators and how they are used.• Default levels are not always the correct levels.• Know how to use a trendline.• Understand the application of all you have read.• You need to know and understand the MTA code of ethics

and its application.


Preparation for these exam

• Read the assigned readings.• Understand the applications.• Memorize.• Feel comfortable with the

vocabulary.


TEST DAY

• Level 1 & level 2 give you plenty of time to answer the questions.

• Time management is key on most exams and is especially important on the Level 3 exam.

• For level 3 one point approximates 1 minute of the exam time.

• Budget your time, remember some answers might be brief bullet points rather than long essays.

• Get ample sleep before the exam.


Additional books that will help your preparation for the exams:

John J. Murphy, TECHNICAL ANALYSIS OF THE FINACIAL MARKETSThe workbook that goes with that book.

Robert W. Colby, THE ENCYCLOPEDIA OF TECHNICAL MARKET

INDICATORS.Hank Pruden, THE THREE SKILLS OF TOP TRADING.

Martin J. Pring, STUDY GUIDE FOR TECHNICAL ANALYSIS

EXPLAINED 4TH EDITION.NO, THEY ARE NOT ASSIGNED


DVD’s THAT WILL HELP

• Elliott Wave, Steve Poser • Point and Figure, Ken Tower • Introduction to Technical Analysis, Ralph Acampora • Intermarket Analysis, John Murphy• Foreign Exchange, William Dale• Volume, Trend & Momentum, Philip Roth• Incorporating Technicals with Fundamentals , Larry

Berman


WHAT TO BRING TO THE EXAM

• You may bring a simple non-memory type calculator.

• You may bring a ruler.• You may bring pencils.• For level three candidates.– Although the charts are on the exam you will be

given a chart package for this exam this is an additional package.


ALERT• If you do not get your chart package for LEVEL THREE EXAM,

please alert the proctor and ask for your charts.• Should no charts be available, either reschedule the exam or

take the exam without the chart package. This is your decision. Please call the office and report this.

• You are allowed to have a calculator, although there is one on the screen, a ruler and a pencil. ALL LEVELS.

• If the proctor won’t allow you these items, call the Marie Penza at the MTA office to reschedule the exam.


WHO IS IN CHARGE OF WHAT

• Marie – exam scheduling and exam problems as well as Membership.

• Cassandra – library, information about joining the MTA and finding sponsors.

• Tim – CMTi, podcasts and webinars.• Jeanette – Director of the CMT program.


GOOD LUCK TO ALL

• We here at the Market Technicians Association wish you success on your exams.

• We are here to help you.• Contact information:– [email protected] [email protected]

646.652.3300Jeanette Young, CFP, CMT

mailto:[email protected]

mailto:[email protected]

Documents

Cmt Program