We hope all the Chartered Market Technicians have been preparing diligently prior to the upcoming CMT exams. As a reminder for those taking their exams and those looking on from the sidelines, the upcoming CMT exam dates are October 17th, 18th, and 19th for the Level I & II exams, and October 18th for the Level III exam. There are several important things you should remember prior to your exams, all of which are spelled out in our ‘How to Prepare’ posting with tips that will help you ace your CMT exams. You may also want to visit the posting: 10 Best Ways to Maximize Time and Effort Before the CMT Exams.
Remember to avoid the common pitfalls that plague most CMT candidates, such as the following:
- Insufficiently familiarizing oneself with suggested readings
- Bypassing the MTA Code of Ethics in favor of assigned textbooks
- Failing to meet the required whole understanding of Technical Analysis
- Not understanding the construction of multiple indicators
- Not understanding the interpretation of the indicators
- Confusing similar terms, most prominently RSI with Relative Strength
- Failing to review or recall material covered on the Level 1 CMT exam
- Inability to generate lucid essay responses that support a technical opinion
- Failing to integrate multiple technical tools into essay responses
- Failing to replicate the high standards and style of research reports generated by accredited CMT’s
- Failing to review or recall material covered on the Level 1 and 2 CMT exams
Level 3 Detailed Pitfalls
For the Level 3 Exam, candidates often do not clearly state an opinion when an opinion is required by the question. In turn, candidates lose points as there is less or no opinion to defend. It should be noted that there is more than one potential interpretation and candidates shall be granted points for a multitude of opinions over multiple questions.
Additionally, Level 3 candidates may chose to ignore all aspects of the presented chart and/or indicators as they fail to demonstrate an ability to apply more than one aspect of Technical Analysis. A standard example occurs when candidates frequently ignore other factors presented when explaining Elliott Wave Counts only, leaving out oscillators, support and resistance, and moving averages.
The essay responses for Level 3 Candidates should be consistently at the top level of professionalism as expected of a CMT charter holder. It must be determined by the Accreditation Committee of the MTA that a candidate has the ability to professionally create technical opinions in such a way as to elevate the status of the whole CMT program general.
Level 3 candidates should also be prepared to analyze and discuss ALL types of charts covered on the Level 3 reading and all prior reading covered in the Level 1 and 2 exams. Candidates who are not familiar with all of the chart types will have a more difficult time gaining points in their responses.
If you will be taking your CMT exam soon, please carefully review the above information. You may also want to review the posts we pointed to at the beginning of our blog posting today, if you are still unsure on the best ways to prepare leading into your exams. Lastly, no matter what level you are taking, we suggest you give yourself at least 5 hours a day to review every day the week prior to your exam. Eat well and stick to a regular sleeping schedule where possible. Finally, take a deep breath and dive in.