CMT Level III study plan

Map the Domain 1 syllabus into a one-page outline covering trend, chart patterns, indicators, intermarket analysis, and behavioral finance, and mark every subtopic you cannot yet explain aloud

Explain, in writing, the construction and interpretation of at least eight widely used indicators (moving averages, MACD, RSI, stochastics, Bollinger Bands, ATR, OBV, ADX) including the signals each produces and its known failure modes

Practice identifying classic chart formations (head and shoulders, double top/bottom, triangles, flags, gaps) on ten anonymized price series you sketch yourself, and record the confirmation rule and measured-move logic for each

Define the difference between leading, coincident, and lagging indicators and classify every indicator in your outline accordingly

Apply Dow Theory and Elliott wave counting rules to at least three self-constructed price series, stating where each interpretation becomes ambiguous

Analyze volume behavior alongside price by writing a paragraph on volume confirmation or divergence for ten separate chart scenarios

Explain relative strength, sector rotation, and intermarket relationships (bonds, commodities, currencies) and describe what each implies for equity exposure

Summarize the core findings of behavioral finance relevant to technicians, covering anchoring, disposition effect, herding, and confirmation bias, with one market example each

Construct a complete trading plan for a hypothetical instrument that specifies entry trigger, stop placement, position sizing rule, and exit criteria, all derived from technical evidence

Evaluate the strengths and limitations of technical analysis as a discipline, including data-snooping risk, survivorship bias in backtests, and the efficient market critique

Distinguish between discretionary and systematic technical approaches and state the governance controls each requires

Draft a set of criteria for judging whether a technical signal is robust rather than curve-fitted

Complete a timed, closed-book self-test of at least 40 mixed questions spanning all Domain 1 subtopics and score it against your own answer key

Identify the three weakest Domain 1 subtopics from that test and rewrite the underlying concepts in your own words without consulting notes

Define the core vocabulary of Domain 2 (volatility, drawdown, beta, correlation, Value at Risk, tracking error, risk budgeting) and write one precise sentence for each

Explain how technical signals can inform risk decisions such as position sizing and stop discipline

Compare the main risk measures (standard deviation, beta, downside deviation, maximum drawdown, VaR, CVaR) and state the assumptions and blind spots of each

Explain how correlation and volatility clustering affect portfolio risk, and describe why diversification can fail in stressed markets

Compute position size from a defined risk budget and a stop distance for at least five worked numerical examples

Describe how stop-loss rules, trailing stops, and time stops change the distribution of portfolio returns

Explain how technical analysis integrates into a portfolio risk framework, covering trend filters for exposure, volatility targeting, and drawdown-based de-risking

Distinguish market risk, liquidity risk, model risk, and behavioral risk in a portfolio context, and give a control for each

Interpret a risk budget by allocating a fixed total risk across three hypothetical strategies and justifying the weights

Critique the use of technical indicators as risk signals, naming at least three ways they can mislead

Complete a timed, closed-book mock of at least 60 questions split evenly across both domains and score it under exam-like time pressure

Re-derive from memory the formulas and rules you missed on the mock, then check them against your notes and correct the errors

Practice constructed-response answers by writing three short essays that each combine a technical read with a risk-management recommendation

Review every item in your remediation log and mark each concept as mastered, shaky, or unresolved

Consolidate both domains into a single two-page summary sheet organized by concept rather than by chapter order

Rehearse the weakest remaining subtopics until you can explain each aloud in under two minutes without notes

Complete a final timed mock of at least 50 questions and review every incorrect answer to root cause, not just to the right choice

Plan exam-day logistics, including time allocation per question type and a strategy for constructed-response questions