CMT Level I study guide
CMT Level I · Work through your exam, one topic at a time.
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. Level I is the first of the three levels; the source text does not enumerate Level I topics, item counts, time limits, fees, or passing scores, so candidates should verify those details directly with the CMT Association. Preparation typically combines the official curriculum with practice on chart reading, indicator interpretation, and risk-management concepts, and the Association offers support such as CMT Curriculum Office Hours; for example, a session with Louis Spector, CMT is advertised for candidates preparing for the December 2026 examination. Topics on this exam: Technical Analysis of Financial Markets (curriculum domain not enumerated in source). The CMT Level I study guide has 1 section and about 488 words.
01Technical Analysis of Financial Markets
The Technical Analysis of Financial Markets domain is the backbone of CMT Level I. It tests whether you can define, construct, and interpret the tools practitioners use to describe price behavior - trend structure, chart types, classical patterns, indicators, volume, sentiment and breadth - and whether you can reason with them rather than merely recognize their names. Expect definitional recall mixed with short applied scenarios. Dow Theory holds that the averages discount everything, that three trend horizons exist (primary, secondary, minor), that a primary trend passes through accumulation, public participation and distribution, that the averages must confirm one another, and that a trend persists until a definitive reversal signal appears; volume should confirm price.
488 words, about 2 minMore study resources for CMT Level I
- Practice questionsIn classical Dow theory, which statement best describes the role of volume?
- FlashcardsDow Theory primary trend. The long-term directional movement of prices lasting months to years, composed of three phases and interrupted only by secondary reactions; it remains in force until reversed by confirmed evidence.
- Cheat sheetDow Theory rests on three premises: prices discount everything, trends persist in three phases (accumulation, public participation, distribution), and trends are confirmed by the averages; a primary trend holds until a clear reversal signal appears.
- Key termsTrend. The general direction in which price moves over a chosen time frame, described as up, down, or sideways.
- Study planDefine the Dow Theory tenets and identify which of its six basic tenets are trend-confirmation versus trend-reversal signals, writing each in your own words.
- Common mistakesDow Theory's confirmation principle is stated in the reading material but candidates memorise the three phases and three trend types and skip the confirmation requirement, so they answer 'buy' whenever one average makes a new high.
- Exam-day guideBring the government-issued photo identification your registration requires.