CMT Newsletter Feb 2012

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    Volume 7, Issue 2

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    Welcome to the May 2013 Administration of the CMT Program

    We hope this newsletter helps you structure your studies for the CMT

    exams. Each issue will focus on one domain on the CMT exam. This

    week we will explain the key points of Theory & History. As always, we

    encourage you to participate in the CMT discussion forum and ask

    questions as you work through the required readings.

    As a reminder,registrationand scheduling closes Wednesday, April 3,

    2013 at 5 PM. Your exam must be scheduled at Prometric by 5 PM on

    April 3rd. We urge you to schedule your exam as soon as possible as

    seats will be granted based on availability.

    You may register for the CMT exam upon joining the CMT Program. After registering, you will be directed to the

    Prometric websiteto schedule your exam. To register for the CMT Exam, just follow these simple steps:

    1. Log in to the MTA website

    2. Select Shopping Cart3. Select CMT Program & Exams

    4. Select Charter Information

    5. Click on the CMT Exam Level that you are eligible for

    6. At the last window of the registration process, click on the Prometric link.

    7. Follow the screen prompts to schedule the date and location of your exam.

    8. At Prometric, to the left, select Academic, Professional, Government and Corporate Programs; then scroll down

    to the testing program Market Technicians Association.

    When scheduling, you will see a calendar with specific dates and times. If you do not see any dates highlighted, it means

    that the site is full. If convenient, please try another site or contactMarie Penzaat [email protected] or 646-652-3300.

    Enjoy this issue of the CMT Newsletter. We hope it supports your studies over the coming weeks.

    - The CMT Support Staf

    Welcome to the CMT Program

    CMT Prep Materials

    Sample Question Booklets

    Level I: Book A | Book B

    Level II: Book A

    Level III: Book A

    Sample Quiz Questions

    Level I: Set A | Set B | Set C

    Level II: Set A

    http://network.mta.org/MTA/MemberDirectory/CommunityDetails/?CommunityKey=e2644dcc-9f65-41fb-bb8b-8c713752aebehttp://network.mta.org/MTA/MemberDirectory/CommunityDetails/?CommunityKey=e2644dcc-9f65-41fb-bb8b-8c713752aebehttp://www.mta.org/eweb/dynamicpage.aspx?webcode=cmt-registration-processhttp://www.mta.org/eweb/dynamicpage.aspx?webcode=cmt-registration-processhttp://www.mta.org/eweb/dynamicpage.aspx?webcode=cmt-registration-processhttp://www.mta.org/eweb/dynamicpage.aspx?webcode=cmt-registration-processhttp://www.mta.org/eweb/dynamicpage.aspx?webcode=cmt-registration-processhttp://www.mta.org/eweb/dynamicpage.aspx?webcode=cmt-registration-processhttps://www.prometric.com/en-us/Pages/home.aspxhttps://www.prometric.com/en-us/Pages/home.aspxmailto:[email protected]:[email protected]:[email protected]://go.mta.org/cmt1samplequeshttp://go.mta.org/cmt1samplequeshttp://go.mta.org/cmt1sampleques2http://go.mta.org/cmt1sampleques2http://go.mta.org/cmt2samplequeshttp://go.mta.org/cmt2samplequeshttp://go.mta.org/cmt3samplequeshttp://go.mta.org/cmt3samplequeshttp://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=22408BBF-E90A-B210-88D18DABF6244F48http://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=22408BBF-E90A-B210-88D18DABF6244F48http://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=1A29A730-BB08-2DB0-AACD44614B6D7CF4http://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=1A29A730-BB08-2DB0-AACD44614B6D7CF4http://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=1A785B7B-E4DC-4BFB-65F993184A940C5Bhttp://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=1A785B7B-E4DC-4BFB-65F993184A940C5Bhttp://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=2D454198-AFF9-F838-4D5D70F7E00D1A29http://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=2D454198-AFF9-F838-4D5D70F7E00D1A29http://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=2D454198-AFF9-F838-4D5D70F7E00D1A29http://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=1A785B7B-E4DC-4BFB-65F993184A940C5Bhttp://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=1A29A730-BB08-2DB0-AACD44614B6D7CF4http://knowledgebase.mta.org/?fuseaction=kb.resource&kbDomainID=223F8DC9-FB37-4DFE-66EEDE2A80ACC61E&kbResourceID=22408BBF-E90A-B210-88D18DABF6244F48http://go.mta.org/cmt3samplequeshttp://go.mta.org/cmt2samplequeshttp://go.mta.org/cmt1sampleques2http://go.mta.org/cmt1samplequesmailto:[email protected]://www.prometric.com/en-us/Pages/home.aspxhttp://www.mta.org/eweb/dynamicpage.aspx?webcode=cmt-registration-processhttp://www.mta.org/eweb/dynamicpage.aspx?webcode=cmt-registration-processhttp://network.mta.org/MTA/MemberDirectory/CommunityDetails/?CommunityKey=e2644dcc-9f65-41fb-bb8b-8c713752aebe
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    One of the best quotes ever seen is one by Jeremy du Plessis, CMT who responded when asked So what is Technica

    analysis?

    His answer: Its a bit like explaining that a car is a pile of steel, glass and rubber that gets you from A to B. A car may be

    made of these things, but the definition does not communicate what a car really is; a mode of transport.

    Technical analysis is the art of recognizing the repetitive shape and patterns within a data series represented by charts

    It is the understanding that these patterns are created by price changes which are in turn created by the marke

    participants like you and me. The patterns created by the market participants repeat themselves because human nature

    is constant; just like fashions repeat, so market actions repeats itself. du Plessis, The Definitive Guide to Point and

    Figure, 2nd

    Edition, Introduction, pg. xxxii-xxxiii

    Technical analysis is today what it was a century ago when Charles Dow tried to put into words and figures what he was

    seeing. A chart represents everything known about a particular issue. It represents human emotions, supply and

    demand, all public and private information and everything known about an issue. That chart tells you what the marke

    perceives as fair value, what buyers are willing to pay and what sellers are willing to accept as the price for the issue

    There are no earnings on a chart; there is nothing but price action. That noted price action of an issue can be plotted in

    various ways, candlesticks, point and figure, kagi, renko, tradeflow, market profile, etc.

    It is the same methods that were used a century ago when prices were entered on pads to keep track of the trade. Th

    markets also demonstrate the Efficient Market Hypothesis (EMH) illustrating irrational and rational behavior among

    buyers and sellers. Arbitrageurs bring back reality and stabilize the markets. An arbitrage trade is one that is based on a

    price that is out of line with its perceived true value. Arbitrageurs keep the markets honest and prevent irrationa

    behavior (noise) in the market to distort values.

    Around 1920, Richard Wyckoff published a technical newsletter introducing classic indicators such as the advance

    decline (A/D line). This publication became very popular among both professionals and private individual traders

    Richard W. Schabacker, who was the financial editor ofForbes and the New York Times, was among the first to use

    terms such as triangles and pennants when referring to chart patterns. The commodity markets, which had long

    depended on price actions for the speculative activity, also evolved their share of special technical theories such a

    those by William Delbert Gann. This was the age of speculation, inside information, and manipulation with little

    Theory & History

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    regulation. Those outside of the information loop were at a disadvantage. Technical analysis made the difference by

    using price action as a predictive tool. Kirkpatrick and Dahlquist, Technical Analysis, 2nd

    Edition, Chapter 3, pg 25-26

    Supporting Resources

    In the Knowledge Base there is a very good article written by Ralph Acampora and Rosemarie Pavlick on Dow Theory

    The authors break the theory down into moving parts making the information easy to understand.

    http://go.mta.org/3377

    Another article in the Knowledge Base by Sam H. Hale The Ticker Tape: Yesterday, Today and Tomorrow is a valuable

    read. Mr. Hale presents historical insights regarding tape readers of the past, development of the markets and

    computers in the present times. The ticker tape represents a true visual of supply and demand. In this article you wi

    learn of the history of the ticker and of many of the technical analysts that are regarded as fathers of technical analysis

    Mr. Hale then develops the history further bringing it up to modern times.

    http://go.mta.org/3378

    http://go.mta.org/3377http://go.mta.org/3377http://go.mta.org/3378http://go.mta.org/3378http://go.mta.org/3378http://go.mta.org/3377
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    CMT Level I

    Who is credited for creating the advance-decline line (A/D line)?

    A. Henry Poor

    B. Charles Dow

    C. Leonard Ayers

    D. Richard Schabacker

    Answer: C

    Reference: Kirkpatrick and Dahlquist, Technical Analysis, 2nd

    Edition, Chapter 3, pg. 25

    CMT Level II

    Advocates of the EMH argue that while irrational players can sometimes affect prices for a short time

    A. the market reflect emotions and are not predictive.

    B. prices are quickly brought back into equilibrium by arbitrage.

    C. the noise in the market will continue until an outside event causes a change in perception.

    D. that the markets are totally irrational and cannot be reflect actual values when in this cycle of trading.

    Answer: B

    Reference: Kirkpatrick and Dahlquist, Technical Analysis, 2nd

    Edition, Chapter 4, pg.46

    Practice Questions

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    CMT Level III

    Dow Theory was created in the 19th century, and it still works well today. Part A. (8 Total Points) (Both Charts are

    needed to answer these questions)

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    A.1. (4 Points)

    Identify the confirmation/ non-confirmation between the Dow Jones Industrial Average Index and the Dow Jones

    Transportation Average Index in 2007 and 2008 respectively showing bullish/ bearish signs.

    A.2. (4 Points)

    Indicate whether price was confirmed/not confirmed by volume in the above periods of time.

    Guideline Answers

    A.1. (4 Points)

    The higher high of DJIA in May 2007 was confirmed by the DJTA - bullish (2 Points). The higher high of DJTA in May 2008

    was not confirmed by the DJIA - bearish (2 Points).

    A.2. (4 Points)

    Higher highs of DJIA & DJTA were not confirmed by volume in May 2007 (2 Points). Higher high of DJTA was not

    confirmed by volume in May 2008 (2 Points).

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    It is a common belief that multiple choice exams are easier than essay exams. One reason for this could be that we know

    at the outset that the correct answer will be one of the possible responses; the trick is to select the correct answer

    What often makes multiple choice exams tricky is that the correct answer is indeed listed, but in order to get to the

    correct answer, you have to have a good grasp of the material. If there are four possible answers to choose from, two

    might be obviously wrong. Two might be so similar that it is difficult to decide which answer is correct. Often a word

    inserted into what otherwise might have been a right answer makes it a wrong answer. To be able to distinguish

    between two close answers, you need to have learned and have a good grasp of a significant amount of information.

    With this in mind, here are some tips to help improve your scores on a multiple choice test:

    1) Pace yourself, and plan your time. Allocate enough time to answer all questions. Dont go too fast, and make

    sure you give yourself enough time to finish the exam by planning before you get into the exam how to break

    the time up.

    2) Read questions carefully. Try to answer the questions before looking for the answer. Make notes on your

    scrap paper.

    3) Be careful not to get confused by double negatives.

    4) If you are not sure about an answer skip the question (marking it for review) and come back to it after youhave answered all the questions you are comfortable answering.

    5) Focus on the task at hand, the exam, and dont worry about not passing.

    6) Remember that questions with absolutes are almost always wrong e.g. always, never, none -are probably

    NOT the answer.

    7) If you must guess an answer, eliminate the obviously wrong choices first. Try not to guess answers until after

    you have completed the test and are looking over your work. It is better in the first instance to skip the

    question. The process of going through the exam could relax you and jolt your memory.

    8) If you finish the exam early it is okay to look over your work. But don't change an answer unless you realize,

    for certain now that youve gone through the exam, that your earlier response was incorrect. Your first

    choice tends to be the correct choice.

    9) Answer all the questions. You dont lose points for incorrect guesses. You dont get points for unanswered

    questions.

    Helpful Preparation Tipsby Stella Osoba (CMT Level III Candidate)

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    Listed below are some useful websites:

    http://www.socialpsychology.org/testtips.htm

    This website provides insight on preparing for, and taking multiple choice exams.

    http://www.muskingum.edu/~cal/database/general/testtaking.html#MChoice

    Another good website that provides test taking tips.

    http://www.socialpsychology.org/testtips.htm

    This is a great website for learning how to study and take exams. If you are having a problem getting started, go

    to this source for help on scheduling and setting up a study program.

    CMT Level III Test Taking Tips

    You will have one question on History and Theory. This essay question can easily be answered using bullet points. I

    asked for a specific response, do your best to answer the question without extraneous information that might dilute the

    quality of your answer. In other words if you are asked, for example, is there a confirmation of the Dow Theory on

    January of 2001, answer simply yes there is confirmation or no there is no confirmation. When asked why, briefly state

    your points as to why you have come to that conclusion.

    Too many times, we have candidates write long essays and never answer the questions that are being asked. You will ge

    no extra credit for knowing facts that were not questioned. If you dont know the answer, go onto the next question and

    return to the unanswered question after the rest of the exam has been completed. Remember this is a timed exam and

    it may take all of the time that is being allotted. Practice by answering questions briefly and fully. Take the practice

    exams and learn to answer questions completely but briefly.

    http://www.socialpsychology.org/testtips.htmhttp://www.socialpsychology.org/testtips.htmhttp://www.muskingum.edu/~cal/database/general/testtaking.html#MChoicehttp://www.muskingum.edu/~cal/database/general/testtaking.html#MChoicehttp://www.socialpsychology.org/testtips.htmhttp://www.socialpsychology.org/testtips.htmhttp://www.socialpsychology.org/testtips.htmhttp://www.muskingum.edu/~cal/database/general/testtaking.html#MChoicehttp://www.socialpsychology.org/testtips.htm
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    The CMT exam tests the critical knowledge and tasks needed to perform the

    duties of a technical analyst. The tasks provide context for designing examquestions which reflect real professional responsibilities. These tasks were

    validated through a job analysis conducted in 2010 in addition to the

    recommendations made by the Test Specifications Committee. Careful and

    continual review of the discipline, the available literature, and the practical

    requirements of technicians, results in the Body of Knowledge upon which you

    will be tested.

    The CMT Program is designed for self-directed study under the guidance and

    support of the MTA. Each Level of the exam builds upon concepts from

    previous levels. While the knowledge is cumulative, exam questions will not

    reappear in subsequent levels. CMT III candidates are responsible for the

    readings assigned to all levels of the CMT Program curriculum.

    To view an informational video presentation from the CMT Program Director, Jeanette Young, CFP, CMTclick

    here.

    The three-part examination consists of:

    CMT Level I (120 scored items with a focus on definition). The CMT Level I examination measures basic, entry

    level competence and understanding of the candidate. The Level I candidate needs to have a working knowledg

    of the basic tools of the technical analyst.

    CMT Level II (170 questions of which 150 are scored). The exam is a combination of application and highe

    level definitions). The Level II exam requires the candidate to demonstrate a greater depth of analysis and

    competency. The Level II candidate is expected to demonstrate proficiency in applying more advanced analytica

    techniques. Overall, the candidate is responsible for the theory and application of concepts and techniques.

    CMT Level III (an essay examination with a focus on integration). The CMT Level III examination tests the

    candidate on the development of logical and consistent research opinions, portfolio strategies and trading

    decisions based on a wide range of charts and technical data. The Level III candidate must pass the ethic

    portion of this exam in order to be successful.

    In 2004 the MTA commissioned the original body of knowledge study through Prometric to support the ongoing

    development of the CMT examination. A body of knowledge study is designed to obtain descriptive information abou

    the tasks performed in a job and the knowledge needed to adequately perform those tasks. This body of knowledge

    study was the basis for the technical analysis material required to successfully pass the CMT examination process. In

    2007, a Pulse Survey was taken to update the CMT test specifications to better reflect changes in the study of technica

    analysis. In response to continued changes in the study of technical analysis and membership growth, the MTA, with the

    Recommended Readin

    ListsThe books and chapters that the MT

    recommends for successful complet

    of the CMT Program

    CMT Level I

    CMT Level II

    CMT Level III

    Requirements for the ExamBody of Knowledge

    http://media.mta.org/videos/2010/cmt-info-session/cmt-info-session.htmlhttp://media.mta.org/videos/2010/cmt-info-session/cmt-info-session.htmlhttp://media.mta.org/videos/2010/cmt-info-session/cmt-info-session.htmlhttp://media.mta.org/videos/2010/cmt-info-session/cmt-info-session.htmlhttp://docs.mta.org/cmt/reading/2013spr-cmt1.pdfhttp://docs.mta.org/cmt/reading/2013spr-cmt1.pdfhttp://docs.mta.org/cmt/reading/2013spr-cmt2.pdfhttp://docs.mta.org/cmt/reading/2013spr-cmt2.pdfhttp://docs.mta.org/cmt/reading/2013spr-cmt3.pdfhttp://docs.mta.org/cmt/reading/2013spr-cmt3.pdfhttp://docs.mta.org/cmt/reading/2013spr-cmt3.pdfhttp://docs.mta.org/cmt/reading/2013spr-cmt2.pdfhttp://docs.mta.org/cmt/reading/2013spr-cmt1.pdfhttp://media.mta.org/videos/2010/cmt-info-session/cmt-info-session.htmlhttp://media.mta.org/videos/2010/cmt-info-session/cmt-info-session.html
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    guidance of Prometric, completed the 2010 Job Analysis to ensure that the CMT exams reflect the knowledge and tasks

    required to perform technical analysis. To view this important document, please follow the link below.

    The CMT Exam Program is designed to be SELF-STUDY

    The CMT Support Staff recommends the following minimum study hours* for each Level of the CMT exam.

    Level I -- 100 hours

    Level II -- 140 hours

    Level III -- 160 hours

    *These recommendations assume each candidate has a college education and work experience in the financial markets

    Recommended study time differs from person to person based on experience with the subject, time working in the field

    and prior knowledge of technical analysis. However, these rigorous exams require significant effort from any candidate

    wishing to successfully complete all three levels.

    Books for the CMT Program are not sold through the Market Technicians Association. However, anyone who i

    registered for the CMT Program may obtain a 50% discount on the published price of Jeremy du Plessis's book entitled

    "The Definitive Guide To Point and Figure" by following this link http://www.global-investor.com/mta.

    Books can be purchased through many retail distributors such as Amazon and via a dedicated webpage created by

    Trader's Library specifically for our candidates (www.invest-store.com/mta). If you have any questions regarding you

    purchases from this website, please contact Becky Dean [email protected].

    A limited number of copies of recommended readings are available to members and affiliates for short-term loan

    through the MTA Library at Baruch College. However, we recommend purchasing your own copy of each resource for

    reference throughout the CMT Program and your future career as a technician.

    Download a rintable PDF of the Bod of Knowled e

    http://www.global-investor.com/mtahttp://www.global-investor.com/mtahttp://www.invest-store.com/mtahttp://www.invest-store.com/mtahttp://www.invest-store.com/mtamailto:[email protected]:[email protected]:[email protected]://www.mta.org/eweb/docs/pdfs/bodyofknowledge-2010.pdfhttp://www.mta.org/eweb/docs/pdfs/bodyofknowledge-2010.pdfhttp://www.mta.org/eweb/docs/pdfs/bodyofknowledge-2010.pdfhttp://www.mta.org/eweb/docs/pdfs/bodyofknowledge-2010.pdfhttp://www.mta.org/eweb/docs/pdfs/bodyofknowledge-2010.pdfmailto:[email protected]://www.invest-store.com/mtahttp://www.global-investor.com/mta
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    Ethics is tested on all three levels of this exam (domain 11 for CMT Level I and domain 10 for CMT Level II) but there are

    significant differences to each level. The Ethics questions on levels I and II are multiple choice single response answers

    The Level III Ethics questions are in short answer/essay format. On Level III, if you fail the Ethics portion of the exam,

    you fail the exam. Please consider the following example from a past CMT candidate: The candidate scored 100% in al

    sections of the Level III exam except Ethics. All candidates are required to attain 70% of the Ethics section to pass

    Unfortunately, this candidate failed that section of the exam. Even though the candidate earned 100% on all othe

    sections of the exam, they had to retake the entire exam due to their performance on Ethics. The Code of Ethics can be

    found in each of the required reading documents. We have also included it at the right for your review.

    The Code of Ethics: http://go.mta.org/3381

    On Levels I and II the ethics questions are relatively basic. If you have read the Code of Ethics it is likely that you wil

    pass that portion of the exams. At Level III, we expect you to understand and to be able to identify violations in a story

    or scenario. We also test your ability to identify violations and non-violations. You must be able to discern whether o

    not a violation has occurred in a fictional example. This exam tests the application of the Code of Ethics thoroughly

    We do not expect you to directly quote the code. but we do expect you to describe the violation that occurred. I

    there is no violation, we expect to see a simple response such as no violation.

    Q. How important are the questions on the MTA Code of Ethics?

    The MTA Code of Ethics is tested on all levels of the exam. In addition, candidates on Level III are required to achieve a

    minimum passing score of 70% on the Ethics section. This means that candidates must receive passing scores on the

    other sections of Level III and attain a passing score of at least 70% on the Ethics questions in order to pass. Candidates

    that do not attain a score of at least 70% on the Ethics questions will not pass the exam and will be required to sit for the

    entire exam again. Level III candidates should place an increased emphasis on the study of the MTA Code of Ethics.

    Supporting Resources

    The Knowledge Base is a place where various topics are discussed, where you will find sample questions, timely video

    and other informative information regarding technical analysis. The Knowledge Base is a wonderful resource built fo

    you. You can find information by topics or keyword search. You can expand your knowledge of a subject beyond the

    required readings by accessing The many resources in the Knowledge Base. A word of caution is that unless something i

    Ethics

    http://go.mta.org/3381http://go.mta.org/3381http://go.mta.org/3381
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    specifically assigned to you, the information in the Knowledge Base will not be tested. If there is a difference in th

    information between the Knowledge Base and the assigned readings, please use the assigned materials.

    We have included two links below to two videos located in the Knowledge Base which cover Ethics. One lecture b

    Charles Comer, CMT is a presentation that was given at an MTA meeting in 2008. Mr. Comer breaks down the code o

    ethics and gives good examples of violations in his presentation.

    The second lecture is a more recent recording from Michael Carr, CMT. This video is specifically made to help yo

    understand the Code of Ethics. We recommend that you watch both videos to help you prepare for your exams:

    http://go.mta.org/3379

    http://go.mta.org/3380

    There is one related item that the MTA would like to bring to your attention in this first issue: confidentiality. We take

    the integrity of the exam very seriously and do not tolerate violations of confidentiality in any form. The Code of Ethicsaddress confidentiality on a firm, client, and portfolio level but this concept extends into items such as rumors about

    others and private information. You will sign a confidentiality agreement at the beginning of each examination. If you

    do not sign the document you will not be allowed to proceed with your exam. The confidentiality agreement states tha

    you will keep in confidence all information about the exam you are about to take. There have been instances wher

    candidates have emailed others asking for information about the content of the exam they had just taken. This is a clea

    violation of confidentiality. It is wrong to ask. It is wrong to tell. And, it is wrong not to report any such violation to the

    MTA headquarters.

    The MTA was built on an unyielding ethical standard from its very beginning nearly 40 years ago. Protecting the integrity

    of the Chartered Market Technician exam is what made it the Gold Standard in technical analysis. MTA members and

    CMT charterholders worldwide represent leading financial institutions because they are qualified, high-performing and

    uphold the highest standard of ethics and integrity.

    http://go.mta.org/3379http://go.mta.org/3379http://go.mta.org/3380http://go.mta.org/3380http://go.mta.org/3380http://go.mta.org/3379
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    Market Technicians Association

    CODE OF ETHICS

    Amended December 2004

    The Market Technicians Association has established ethical standards of professional conduct which every Member and Affiliate

    shall maintain. The Ethical Standards set forth in 1 through 9 serve as a guide of professional responsibility and as a benchmark for

    ethical judgment.

    1. Members and Affiliates shall maintain at all times the highest standards of professional competence, integrity and judgment. Said

    standards should be maintained, and members and affiliates should act with dignity and in an ethical manner when dealing with the

    public, clients, prospects, employees, fellow Members and Affiliates and business associates.

    This ethical standard requires strict compliance with the applicable laws and regulations of any government, governmental agency

    and regulatory organization which has jurisdiction over the professional activities of Members and Affiliates.

    This same ethical standard requires that Members and Affiliates abide by the Constitution and By-Laws of the Association, and all

    rules promulgated by its Board of Directors. Members and Affiliates shall not unduly exploit their relationship with the Association

    for commercial purposes, nor use, or permit others to use, Association mailing lists for other than Association purposes.

    2. Members and Affiliates shall not publish or make statements which they know or have reason to believe are inaccurate or

    misleading. Members and Affiliates shall avoid leading others to believe that their technically-derived views of future security pricebehavior reflect foreknowledge rather than estimates and projections subject to reexamination and, as events may dictate, to

    change.

    3. Members and Affiliates shall not publish or make statements concerning the technical position of a security, a market or any of its

    components or aspects unless such statements are reasonable and consistent in light of the available evidence and of the

    accumulated knowledge in the field of financial technical analysis. New methods of technical analysis and modifications of existing

    concepts and techniques shall be fully documented as to procedure and rationale. Proprietary methods shall not be infringed, but

    this standard shall be a guide in the creation of proprietary products.

    4. Members and Affiliates shall not publish or make statements which indefensibly disparage and discredit the analytical work of

    others.

    5. Members and Affiliates shall not seek, disseminate or act on the basis of material, non-public (inside) information, if to do so

    would violate the laws and regulations of any government, governmental agency or regulatory organization relating to the use of

    inside information.

    6. Members and Affiliates shall keep in confidence knowledge concerning the lawful private affairs of both past and present clients,

    employers, and employers clients.

    7. When a Member or Affiliate recommends that a security ought to be bought, sold or held, adequate opportunity to act on such a

    recommendation shall be given to the Members or Affiliates clients, employer, and the employers clients before acting on behalf

    of either the Members or Affiliates own account or the accounts of immediate family members.

    8. Members and Affiliates shall not copy or deliberately use substantially the same language or analysis contained in reports, studies

    or writings prepared by any author unless permission to do so is received, in advance, from the author. In the event the origina

    author is deceased, or is otherwise unavailable to grant such permission, Members and Affiliates must ensure that the original

    author receives prominent and adequate credit for the original work.

    9. Members who have earned the CMT designation shall use CMT after their name whenever and wherever appropriate.

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