Prepare for the Chartered Market Technician (CMT) exam with our comprehensive guide. Understand the exam format, key content areas, and tips for success to enhance your study experience.

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Chartered Market Technician (CMT)
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Question of the day

What is the basis of On-Balance Volume (OBV)?

On-Balance Volume (OBV) is a technical analysis indicator that measures buying and selling pressure as a cumulative indicator, which can help predict price movements. The fundamental premise of OBV is that changes in volume typically precede price changes. When volume increases on up days, it indicates bullish sentiment, suggesting that the price may rise soon after. Conversely, when volume increases on down days, it suggests selling pressure, indicating that the price may fall. This concept reflects the belief that volume is a leading indicator; therefore, as traders and investors accumulate stock, the price is likely to follow. The calculation involves adding the day's volume if the price closes higher and subtracting it if the price closes lower, allowing traders to see the underlying strength or weakness behind price movements. As such, the correct answer highlights the critical role of volume in forecasting price movements, establishing that volume indeed precedes price.

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"Chartered Market Technician" isn't one exam, it's three, and the content weighting shifts dramatically between them. This page focuses on Level I, where most candidates start.

Format 132 multiple choice
Time 2 hours
Passing score ~70%, adjusted annually
Standard fee $875 early / $1,075 standard / $1,475 late
Academic rate $295

Level I weighting: Theory and History, 38%, the largest chunk by a clear margin. Classical Techniques, 33%. Advanced Techniques, 26%. Ethics, a small but still-required 3%. Theory/History and Classical Techniques together are 71% of the exam, which means the material that feels most foundational and least flashy is exactly where your study hours should concentrate.

The CMT Association restructures the weighting completely at Level II: 170 questions over 4 hours, Classical and Advanced Techniques jump to 40% each, Theory and History collapses to 7%. Level III drops multiple choice almost entirely in favor of short-answer essays, manually graded by CMT charterholders, with Application of Technical Analysis making up 95% of the content.

That progression is deliberate. Level I checks whether you understand the concepts. Level II checks whether you can apply them. Level III checks whether you can build an actual research opinion or trading strategy from them.

No formal eligibility applies to sit for any level, though a university degree and market experience are recommended. Earning the charter itself requires passing all three plus three years of qualifying work experience and professional membership with verified references.

Our practice questions match Level I's real weighting, concentrated on theory, history, and classical technique, not spread evenly across material the exam itself doesn't treat evenly.

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FAQs

Quick answers before you start.

What is the Chartered Market Technician (CMT) exam format?

The CMT exam consists of three levels, evaluating candidates' knowledge on technical analysis and market trends. Each level includes multiple-choice questions that test a range of skills. For better exam preparation, utilize comprehensive resources that simulate real exam conditions to ensure you're well-equipped.

What topics are covered in the CMT exam?

The CMT exam covers various topics, including market theory, technical analysis, chart patterns, risk management, and behavioral finance. Understanding these subjects is essential to excel. It's beneficial to review extensive study materials that align with the exam syllabus to enhance readiness and confidence.

What are the career opportunities after passing the CMT exam?

After obtaining the CMT designation, professionals can work as technical analysts, portfolio managers, or investment strategists. These roles often offer competitive salaries; for instance, a technical analyst in New York can earn between $70,000 to $130,000 annually, depending on experience and specialization.

How do I register for the CMT exam?

To register for the CMT exam, visit the CMT Association's official website. You'll need to create an account, choose the exam level, and pay the required fee. Preparing with high-quality resources, such as those that replicate the exam environment, can improve your chances of success.

What are the recommended study resources for the CMT exam?

For effective study, consider utilizing comprehensive guidebooks that cover the CMT curriculum in depth. Additionally, online platforms offer mock exams that reflect actual testing scenarios, allowing you to hone your skills and assess your readiness for the certification exam.

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    I scored well thanks to the exam materials! The quality is high, and it truly reflects what you’ll encounter on the exam day. The explanations for each question added value, especially the intricate details on market indicators. I wouldn’t hesitate to recommend this to anyone serious about becoming a CMT. 5 stars!

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