CMT Level I case studies
CMT Level I · Put your knowledge to work in context.
The Chartered Market Technician (CMT) credential is awarded by the CMT Association, which describes itself as the leading global credentialing body for technical analysis. The CMT Program is a rigorous three-level curriculum that provides market professionals with comprehensive training in technical analysis of financial markets, leading to the Chartered Market Technician® designation. It is aimed at practitioners who evaluate markets through statistical patterns in price, volume, and momentum to forecast potential market behavior and inform investment decisions. The Association reports 2,500+ active CMT charterholders, representation in 137 countries, 36 chapters globally, and 35,000 financial analysts who have attended its events. The CMT Level I case studies are 5 cases and about 2,644 words.
1Breakout on Contracting Volume
XYZ has traded between 42.00 and 48.00 for eleven weeks. The 50-day SMA is flattening near 45.10 and the 200-day SMA sits at 44.80.
626 words, about 3 min2Crossover Whipsaw in a Range
A systematic trader runs a 20/50 EMA crossover on a large-cap equity ETF. Over the past four months the ETF has oscillated between 198 and 204, a 3% band, closing above the 20-day EMA 19 times and below it 17 times.
573 words, about 3 min3Momentum Divergence Into Earnings
A stock trades at 112.40, a new 52-week high, after a rise from 96. At the prior swing high of 110.80 three weeks earlier, RSI(14) reached 71; at the new high it is 62.
494 words, about 2 min4Retesting a High-Volume Congestion Zone
A stock advanced from 30 to 55 over five months. During the advance it spent four weeks consolidating between 46 and 48, with volume running about three times its prior average in that zone.
496 words, about 2 min5Index High, Breadth Lower
A cap-weighted broad index prints a new high at 4,620. The advance-decline line peaked six weeks earlier and is now 4% below its own high.
455 words, about 2 min