CMT Level I study plan

Define 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

Distinguish the three trend classifications (primary, secondary, minor) and label them on a hand-drawn sketch of a price series you construct yourself

Explain how support and resistance levels form and describe at least four criteria that strengthen a level (volume at the level, number of touches, recency, and prior role reversal)

Compute a simple moving average, an exponential moving average, and a weighted moving average by hand for a 10-day series and state how each responds differently to a new price

Identify the major chart patterns (head and shoulders, double top and bottom, triangles, flags, wedges, rectangles) and state the volume behavior expected during formation and breakout for each

Calculate a measured-move price target for at least three patterns and note where the target is invalidated

Explain the difference between a reversal pattern and a continuation pattern using two examples each

Describe how gaps (breakaway, runaway, exhaustion) are distinguished and what each implies about trend maturity

Define the candlestick construction (real body, upper and lower shadows) and interpret at least eight single- and multi-candle formations

Contrast candlestick signals with bar-chart signals and explain why context (trend location, volume) determines whether a candle signal matters

Explain point-and-figure chart construction, including box size and reversal amount, and describe how P&F filters time and noise

Compare line, bar, candlestick, and P&F charts for what each emphasizes and when a technician would prefer one

Explain the assumptions behind volume analysis and describe how volume confirms or diverges from price at highs, lows, and breakouts

Interpret open interest in futures and explain how it differs from volume

Describe breadth measures such as advance-decline line and how breadth divergence is read

Explain the role of sentiment indicators and identify the contrarian logic behind them

Explain the construction and interpretation of oscillators including RSI, stochastic, and rate of change, and state the overbought/oversold caveat in strong trends

Describe MACD construction, signal-line crossovers, and histogram interpretation

Explain how moving average envelopes and Bollinger Bands are constructed and how band width relates to volatility

Distinguish lagging from leading indicators and select an appropriate indicator for a trending versus a range-bound market

Define the Elliott wave structure and the Fibonacci relationships used for retracement and projection, and state the main criticism of wave counting

Explain intermarket relationships among equities, bonds, commodities, and the dollar, and describe how these relationships can shift regime

Describe how relative strength analysis compares an instrument to a benchmark

Explain the concept of market cycles and seasonality and distinguish them from trend

Build a complete trading plan for a hypothetical position that specifies entry trigger, initial stop, position sizing, and exit rules based on technical levels

Explain risk-reward ratio and how stop placement derived from support/resistance differs from a fixed-percentage stop

Describe how a technician integrates multiple timeframes to align entry with the dominant trend

Identify behavioral biases (confirmation bias, recency bias, loss aversion) that corrupt technical decision-making and state a rule to counter each

Review your weeks 1 through 7 deliverables and consolidate every definition you wrote into a single glossary

Answer at least 100 self-written practice questions across all topics and log every miss with the underlying concept

Re-derive from memory the construction of the five indicators you found hardest

Simulate exam conditions with a timed full-length practice session and record your pacing per question