The CMT Level I exam is the first of three exams administered by the CMT Association leading to the Chartered Market Technician designation, the leading global credential for practitioners of technical analysis. Level I tests basic, definitional knowledge of technical analysis theory and practice — candidates are expected to recognize and recall concepts rather than apply them in complex, multi-step scenarios (that comes at Levels II and III).
Who it's for
Analysts, portfolio managers, traders, and students who want to formally study price-and-volume-based market analysis, as well as anyone pursuing the CMT charter as a complement to (or alternative to) fundamentally-oriented credentials like the CFA.
What's covered
- Classical Techniques — Dow Theory, trend, support and resistance, chart types, classical chart and continuation patterns, volume, and moving averages.
- Advanced Techniques — momentum oscillators, Elliott Wave theory, cycle analysis, intermarket analysis, relative strength, and market breadth/sentiment indicators.
- Theory and History — the historical development of markets and indices, market structure, and the intersection of technical analysis with academic theories such as the efficient market hypothesis and behavioral finance.
- Ethics — the CMT Association's Code of Ethics and Standards of Professional Conduct.
What to expect
Level I is a 2-hour, multiple-choice, computer-based exam. Questions are weighted toward the Classical and Advanced Techniques content areas, with smaller allocations to Theory/History and Ethics. A passing candidate advances to Level II, which shifts toward applying these concepts to realistic charts and scenarios.
How to prepare
Because Level I emphasizes recall of vocabulary and concepts, building a precise working definition of each term — the difference between a symmetrical triangle and a wedge, what On-Balance Volume actually measures, which Dow Theory tenet a given statement illustrates — pays off more than practicing complex chart reads (which is tested more heavily at later levels). The Ethics section rewards familiarity with the actual language of the Code and Standards rather than general common sense.
Certification details
- Administering body: CMT Association.
- Format: Computer-based, multiple-choice.
- Duration: 2 hours.
- Prerequisite: None to sit for Level I; the full CMT charter requires passing Levels I, II, and III plus relevant work experience and CMT Association membership.