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CMT Program · Last updated October 2026

CMT Level II Exam (Chartered Market Technician): free practice test

The second CMT exam moves from knowing the tools to applying them: reading charts and indicators together, testing systems, measuring relative strength and managing risk. Pass Level I first (or hold a Level I waiver). Exams run in June and December.

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Premium: 3,000 practice questions, 6 full mock exams, 800 flashcards and 60 comprehensive key notes, topic by topic. See the study path ·

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About the CMT Level II exam

The second CMT exam moves from knowing the tools to applying them: reading charts and indicators together, testing systems, measuring relative strength and managing risk. Pass Level I first (or hold a Level I waiver). Exams run in June and December.

What's on the exam

CMT Level II
Chart Patterns and Trend Analysis in Practice
6 key facts
Indicators, Confirmation and Divergence
6 key facts
Cycles, Elliott Wave and Sentiment
6 key facts
Intermarket and Relative Strength Analysis
6 key facts
Statistics, System Design and Testing
6 key facts
Risk Management, Behavioral Finance and Ethics
6 key facts

Each branch is a topic in the official outline. Members see every key fact on the full mind map. Read the free study guide →

How to pass the CMT Level II exam

  • 170 questions in 4 hours is about 1 minute 25 seconds each. Many are chart or scenario questions, so practise reading them fast.
  • Expect questions that combine two tools, such as a price pattern confirmed (or not) by volume or momentum. Ask what each piece of evidence says before choosing.
  • Know your system-testing vocabulary: curve fitting, out-of-sample testing, drawdown, profit factor and expectancy.
  • 20 questions are unscored trial items. Treat every question as if it counts.

Save your results and get your Readiness Score

Create a free account after the test: your score by topic, a mistakes bank, the complete study notes for the first topic, flashcards and the Indicator Formula Sheet.

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What's in the premium CMT Level II prep

Premium CMT Level II prep is studied one topic at a time. Each step starts with that topic's key notes and flashcard deck, then its own question sets of 25, so you master one topic before you move to the next. When every topic is strong, the 6 full mock exams show you're ready.

3,000practice questions, every answer explained
6full-length mock exams, 170 questions each, timed
800flashcards with spaced repetition, sorted by topic
60comprehensive key notes across 6 topics

Your step-by-step study path

  1. 1
    Chart Patterns and Trend Analysis in Practice10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25
    Notes free with an account
  2. 2
    Indicators, Confirmation and Divergence10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25
    Premium
  3. 3
    Cycles, Elliott Wave and Sentiment10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25
    Premium
  4. 4
    Intermarket and Relative Strength Analysis10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25
    Premium
  5. 5
    Statistics, System Design and Testing10 key notes, 130 flashcards, then 500 practice questions in 20 sets of 25
    Premium
  6. 6
    Risk Management, Behavioral Finance and Ethics10 key notes, 130 flashcards, then 500 practice questions in 20 sets of 25
    Premium
  7. Final step: 6 full mock exams170 questions each, timed like test day. Pass them, then book your exam.
    Premium
Free with an account

Read the complete CMT Level II study notes for “Chart Patterns and Trend Analysis in Practice”

Our first full set of comprehensive notes, about 14 minutes of reading: Confirmation comes before conviction · Measured moves · When patterns fail · Trend analysis on more than one chart, a worked exam example, the traps examiners use and a one-minute recap. Create a free account to read it and see how premium notes work before you decide.

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Study tools included

3,000 practice questions

3,000 exam-style questions per exam, organized topic by topic in sets of 25. Every answer explained, with the rule it comes from.

6 full mock exams

6 full-length timed mock exams per exam, with real question counts and time limits, so test day feels like practice day.

Exam Readiness Score

One 0 to 100 number that tells you when you're ready to book. Reach 80 and you're covered by our Pass Guarantee.

800 flashcards + spaced repetition

800 flashcards per exam, in a deck for each topic, that come back right before you'd forget them. Five minutes a day keeps every number fresh.

60 comprehensive key notes

60 key notes per exam, split across its topics and each explained in full: the concepts, worked exam examples, the traps examiners use and a quick recap. Your first set is free with an account.

Mind maps

See the whole exam on one screen: every topic and the facts under it.

Sample questions with answers

These are the questions in the free test above, with answers. Try the test first. You'll learn more by getting some wrong.

1. A stock breaks out of a 3-month rectangle that ran between $40 and $48 and closes at $49. What is the classic measured-move target?
Answer: $56. The rectangle's height is $48 − $40 = $8. Add it to the breakout level: $48 + $8 = $56.
2. A breakout above resistance on volume well below average is best read as:
Answer: Less reliable, with a higher chance of failing. Breakouts are more trustworthy when volume expands. A low-volume breakout lacks participation and is more likely to fail.
3. Price makes a higher high while RSI makes a lower high. This is:
Answer: Bearish divergence. When momentum fails to confirm a new price high, it's a bearish (negative) divergence: the advance is losing strength.
4. In a strong uptrend, the 14-day RSI stays between 40 and 80 for months. What does this suggest?
Answer: RSI's range has shifted up, as it typically does in bull trends. In bull markets RSI tends to range roughly 40 to 80 (and 20 to 60 in bear markets). A range shift is itself a trend signal, not a sell signal.
5. Bollinger Bands narrow to their tightest width in six months. Analysts call this a squeeze, which usually signals:
Answer: Low volatility that often comes before a large move. Volatility is cyclical: a squeeze marks unusually low volatility, which often precedes an expansion. The squeeze doesn't tell you the direction.
6. In Elliott Wave terms, a flat correction subdivides as:
Answer: 3-3-5. A zigzag is 5-3-5, a flat is 3-3-5, and a triangle is 3-3-3-3-3.
7. A put/call ratio far above its normal range is read by contrarian analysts as:
Answer: Excessive pessimism, which is often bullish. Heavy put buying shows fear. Contrarians treat extreme readings as a sign that sentiment is stretched and a reversal may be near.
8. A relative strength line (stock price ÷ index) is rising while the stock price falls. This means:
Answer: The stock is outperforming the index. The ratio rises when the stock does better than the index, even in a falling market. Relative strength measures performance against a benchmark, not direction.
9. In classic intermarket analysis (Murphy), what is the usual relationship between bond prices and stocks during a normal, disinflationary environment?
Answer: Rising bond prices (falling yields) are generally supportive of stocks. In disinflationary periods falling yields support stocks, and bonds often turn before stocks. The relationship can break down in deflationary periods.
10. A trading system performs brilliantly on the data used to build it but poorly on new data. The most likely cause is:
Answer: Curve fitting (over-optimization). Over-optimized systems fit noise in the test data. Testing on out-of-sample data and keeping parameters few guards against it.
11. A system's gross profits are $90,000 and its gross losses are $60,000. What is its profit factor?
Answer: 1.5. Profit factor = gross profit ÷ gross loss = 90,000 ÷ 60,000 = 1.5. Above 1 means the system made money before costs.
12. Correlation between two markets is 0.9. What share of the variation in one is explained by the other (R²)?
Answer: 81%. R² = 0.9² = 0.81, so 81% of the variation is explained.
13. A trader risks 1% of a $200,000 account per trade and places a stop $4 below the entry price. How many shares can they buy?
Answer: 500. Risk = 1% × 200,000 = $2,000. Shares = $2,000 ÷ $4 risk per share = 500.
14. Which ratio divides excess return by downside deviation only, ignoring upside volatility?
Answer: Sortino ratio. The Sortino ratio penalizes only harmful (downside) volatility. Sharpe uses total standard deviation; Treynor uses beta.
15. Under the CMT Association's ethics standards, a member who publishes a research report must:
Answer: Have a reasonable basis for the analysis and distinguish fact from opinion. Members must have a reasonable and adequate basis for their analysis, separate fact from opinion, and never plagiarize.

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  • 800 flashcards + 60 key notes per exam, by topic, plus mind maps
  • Spaced repetition + mistakes bank
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  • Video lessons as they release
  • Content updates during your access
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Certification guide

How to become a Chartered Market Technician (CMT): The CMT charter is the main professional credential in technical analysis. You earn it by passing three exams run by the [CMT Association](https://cmtassociation.org/cmt-program), then joining the Association and meeting its work-experience requirement. Most candidates take 18 months to 3 years. Here is the path, what it costs and how long to study.

CMT Level II exam FAQ

How many questions are on the CMT Level II exam?

170 multiple-choice questions (150 scored, 20 unscored trial items), with a time limit of 4 hours. Format: closed book, computer-based.

What is the passing score for CMT Level II?

Not published. The CMT Association sets a scaled passing standard; practise to 70% or higher.

How much does the CMT Level II exam cost?

About US$875 to US$1,475 per level by registration window (2026). Fees change by registration window, so confirm on the CMT Association website before you register.

Which languages is the CMT Level II exam offered in?

English.

Where do I take the CMT Level II exam?

Prometric (test center or ProProctor remote proctoring).

Is this CMT Level II practice test free?

Yes. The 15-question practice test on this page is free, with an explanation for every answer and no signup. A free account also unlocks the complete study notes for the first topic. The full CMT Level II prep is Premium at $147 a month for this exam.

What's in the premium CMT Level II prep?

3,000 practice questions organized topic by topic (Chart Patterns and Trend Analysis in Practice: 500; Indicators, Confirmation and Divergence: 500; Cycles, Elliott Wave and Sentiment: 500; Intermarket and Relative Strength Analysis: 500; Statistics, System Design and Testing: 500; Risk Management, Behavioral Finance and Ethics: 500), 6 full-length timed mock exams of 170 questions, 800 flashcards and 60 comprehensive key notes split across all 6 topics, plus a mistakes bank and the Readiness Score.

Compare CMT Level II with the other CMT levels

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Exam details are summarized from the official candidate information available in October 2026. the CMT Association changes formats and fees, so confirm with CMT Association before you book. CMTQuizBank is not affiliated with the CMT Association or Prometric.

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