Chartered Market Technician (CMT)

CMT (USA)

The Chartered Market Technician (CMT) Program requires candidates to demonstrate proficiency in a broad range of topics in the field of Technical Analysis. The Program consists of three levels. The CMT Level I and CMT Level II exams are multiple choice while CMT Level III exam is in short answer and essay form.

The objectives of the CMT Program are:• To professionalize the field of Technical Analysis• To promote high ethical and professional standards• To guide candidates in mastering a professional body of knowledge• Those candidates who successfully complete all three levels of the

CMT examination and agree to abide by the MTA Code of Ethics are granted the right to use the CMT credential.

Value of CMT Designation • The CMT designation demonstrates to clients and potential

clients, employers and potential employers, and your colleagues and peers that you are a professional in the field of Technical Analysis.

• Successful completion of the CMT Level I and CMT Level II exams provides a significant step towards attaining the Registered Research Analyst (Series 86) from FINRA.

• The CMT designation allows you to separate yourself from other professionals in you industry. It is a perfect compliment to your fundamental knowledge of the financial industry.

Requirement for CMT Designation• Successful completion of all three (3) levels of the CMT Exam.• Obtained 'Member Status' in the MTA.• Have been gainfully employed in a professional analytical or

investment management capacity for a minimum period of three (3) years and must be regularly engaged in this capacity at the time of successfully passing all three (3) levels of the CMT Exam.

• The MTA headquarter staff has worked with the Admissions Committee and select MTA volunteers to create a document that explains the process, responsibilities, and most importantly the benefits of not only being a Member candidate but also for those willing to be sponsors.

Examination for CMT(USA)Level 1 • Exam time length: 2 hours, 15 minutes• Exam format: Multiple Choice (132 multiple-choice items with a

focus on definition)Level 2• Exam time length: 4 hours, 15 minutes• Exam format: Multiple Choice (170 multiple-choice items with a

focus on application)

Level 3Exam time length: 4 hoursExam format: Essay (an essay examination with a focus on integration)Points: 230

Specification of Exams• CMT Level 1 (Definition). The Level 1 examination measures basic, entry-

level competence and understanding of the candidate. The CMT Level 1 candidate needs to have a working knowledge of the basic tools of the technical analyst.

• CMT Level 2 (Definition/Application). The CMT Level 2 examination requires the candidate to demonstrate a greater depth of analysis and competency. The CMT Level 2 candidate is expected to demonstrate proficiency in applying more advanced analytical techniques. Overall, the candidate is responsible for the theory and application of concepts and techniques.

• CMT Level 3 (Integration). The CMT Level 3 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 CMT 3 candidate must pass the ethics portion of this exam or risk failure.

CMT Level I SpecificationCONTENT AREAS PERCENTAGE QUESTIONS (+/- 2)

Theory and History 10% 12

Markets 3% 3

Market Indicators 13% 16

Construction 15% 18

Trend Analysis 15% 18

Chart and Pattern Analysis 18% 22

Confirmation 10% 12

Cycles 4% 5

Selection and Decision 5% 6

System Testing Money Management 4% 4

Ethics 3% 4

TOTAL 100% 120

120 Operational Items (12 Pretest Items): Total Items: 132 per exam form

CMT Level II SpecificationCONTENT AREAS PERCENTAGE QUESTIONS (+/- 2)

Theory and History 3% 4

Market Indicators 5% 7

Construction 1% 1

Trend Analysis 20% 30

Chart and Pattern Analysis 23% 35

Confirmation 15% 23

Cycles 3% 4

Selection and Decision 17% 26

System Testing Money Management 10% 15

Ethics 3% 5

TOTAL 100% 150

150 Operational Items (20 Pretest Items): Total Items: 170 per exam form

CMT Level III Specification• The CMT Level 3 Examination is a four-hour essay examination that consists of

independent questions worth a total of 240 points. These questions have sub-questions within them. Therefore one question may have several parts which call for independent analysis linking that analysis to well supported conclusions.

• The primary focus of the Level 3 exam is the practical and ethical application and integration of technical analysis. In other words, all past requirements and background knowledge will be tested in an application format. All candidates must pass and achieve at least a 70% score on ethics.

• A candidate will not achieve a pass for the CMT 3 exam unless or until the ethics portion of the exam is passed. Based on information provided by MTA, the point system is predicated on the curriculum and objectives of the Level 3 exam.

• The Test Specifications Committee did not assign specific percentages to the knowledge domains; however, the Committee members did discuss the potential test focus in terms of a loose ranking of the knowledge domains from “major focus” to “minor focus”. At the present time, Prometric is involved with the administration, but is not involved with scoring of the CMT Level 3 Examination.

Continue Education for CMTCE Credits Breakdown

• The following is a breakdown of various member services and the credits you receive for participating in them:

• Attend the Annual Symposium - 15 Credits• Attend a Regional Seminar - 10 Credits• Have an article published in the Journal ofTechnical Analysis - 7 Credits• Present at an MTA Event - 5 Credits• Attend a College Colloquium - 5 Credits• Code of Ethics refresher webcast - 3 Credits• Attend a Chapter Meeting - 3 Credits• Have an article published in Technically Speaking - 3 Credits• Attend a live webcast - 2 Credits• Watch an archived webcast/event - 1 Credits• Listen to an archived podcast - 1 Credits• Member satisfy at least 15 credit points

Exam Dates & Fees Structure• CMT Program and Exam Fees• Please note: CMT Program fees do not include the cost of annual MTA dues of

$300 USD. The CMT Program registration fee must be paid when registering into the CMT Program for the first time. All subsequent fees shall be paid upon registration for each exam.

• CMT Program registration fee: $250.00 USD• CMT Level 1 Exam fee: $250.00 USD• CMT Level 2 Exam fee: $450.00 USD• CMT Level 3 Exam fee: $450.00 USDCMT Program Registration Fee and Exam fees are notrefundable

• Exam Dates are available on May & OCT every year• Exam time length: 2 hours, 15 minutes• Exam format: Multiple Choice

Suggested Reading For CMT Level I

1) MTA Code of Ethics (attached at the end of this document)2) Technical Analysis of Stock Trends, 9th Edition by

Edwards, Robert D., 3) The Complete Resource for Financial Market Technicians

2nd Edition by Kirkpatrick, Charles D. and Dahlquist4) Technical Analysis Explained, 4th Edition, by martin j Pring5) The Definitive Guide to Point and Figure 2nd Edition, by

du Plessis, Jeremy

Suggested Reading For CMT Level II

1) Suggested reading of CMT level I2) Elliott Wave Principle, 10th Edition by Frost, A.J. and Prechter,

Robert R3) New Trading Systems and Methods, 4th Edition, Kaufman, Perry J.4) Japanese Candlestick Charting Techniques, 2nd Edition, Nison, Steve5) Investment Psychology Explained, by martin Pring6) Technically Speaking by Excerpt from: Wilkinson,

Suggested Reading For CMT Level III

1) Suggested reading of CMT level I2) Suggested Reading of CMT Level II3) Technical Analysis for the Trading Professional 2 nd Edition, Brown,

Constance M4) Behavioural Investing: A Practitioners Guide to Applying

Behavioural Finance by James5) Trading with Intermarket Analysis: A Visual Approach to Beating the

Financial Markets Using ExchangeTraded Funds by john Murphy

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