CMT Level 2

CMT Level II adds to the basic foundation of level I and measures the candidate’s competency in the application of concepts, theory, and techniques covered by the required readings. As we move forward, we will learn a lot about Systematic Trading, System Testing and various aspects of program trading.

Chartered Market Technician Level 2 - Prep Course

20 Live Sessions

Primary Language : English 
(**Special Batch for Hinglish)
Average 4Hrs a Week

Live Tests

Get the Feel of Exam Environment & Be Well Prepared

Easy Content Access

Notes, Test Bank, Lectures
100% Self-Paced Study

iOS & Android App

Everything is at your fingertips on Mobile and Tablet 

Practical Assignment

Practical Assignments using TradingView will be shared for each Topic

Live Support

Connect 24*7 with your Mentors and Fellowmates

Enroll Before 10th February Get 15%Flat Discount

Was INR 38,500/-, Now Pay Only INR 32,725

What will you learn ?

  • 1 Charts: Understanding Data Intervals
    Employ a sequence of multiple data intervals to identify trends
    Compare the typical construction of weekly and monthly interval charts
    Review challenges related to consistent data sampling using time-based intraday intervals
    Interpret general trend relationships in charts with multiple price-data sets
    Interpret the significance of the data points in a scatter plot
  • 2 Additional Charting Methods
    Describe the construction of the types of charts in this chapter
    Compare the axes and intervals of these charts
    Analyze trends and price action using these charts
    Demonstrate how point-and-figure charts help minimize “noise”
    Distinguish between charts with defined and undefined x-axes
    State the basic principles behind Market Profile
  • 3 Moving Averages
    Contrast various types of moving averages used in trend analysis
    Illustrate four ways moving averages are used by technicians
    Analyze trend movement using Directional Movement Indicators
    Compare common envelope, channel, and band indicators
  • 4 Time-Based Trend Calculations
    Examine methods for forecasting price direction
    Calculate a simple approach to momentum
    Inventory various weighting methods for moving averages
    Explain the drop-off effect and its impact on technical indicators
  • 5 Trend Systems Part 1
    Explain three reasons why trend systems work
    Demonstrate appropriate asset selections based on trend and forecast
    Diagram how buy and sell signals are used with indicators and tools for measuring trend, such as: Moving Averages, Bollinger Bands, Keltner Channels, Percentage Bands, Volatility Bands, and combinations of bands and other indicators
    Illustrate use of the 10-day moving average rule in a trading system
  • 6 Trend Systems Part 2
    Analyze how a trader or investor would go about selecting the right moving average, trend method, and speed
    Compare the role of each moving average in a two-trend or three-trend method of trading
    Contrast two general rules for generating an exit signal when using moving averages, and explain which one of the two is considered better than the other
    Describe the “Golden Cross” and the “Death Cross”
  • 7 Momentum and Oscillators
    Differentiate between momentum and rate of change studies in technical analysis
    Distinguish among various calculations of momentum
    Demonstrate use of momentum for trend indication and associated signals
    Demonstrate use of momentum for finding price extremes and associated signals
    Illustrate the use of MACD to generate trading signals
    Compare various oscillators and their trading signals including RSI, stochastics, and TRIX
  • 8 Price Trends and Volume
    Describe the four phases of price-volume trends
    Interpret volume in the context of price trends
    Interpret price and volume to identify the current phase
  • 9 Volume and Breadth
    Compare various volume indicators such as On-Balance Volume, Accumulation Distribution, and VWAP
    Analyze changes in breadth in the context of price trends
    Interpret breadth indicators such as the McClellan Oscillator
    Interpret indicators that combine breadth with volume such as Arms Index and Thrust Oscillator
    Examine approaches to incorporating volume and breadth into systematic methods
  • 10 Bar Chart Patterns
    Critique the controversy over whether tradeable patterns exist in technical analysis
    Discuss the influence that computer technology has had on the study of patterns
    Diagram classic chart patterns such as triangles, and double and triple tops and bottoms
    Draw rounding chart patterns such as head-and-shoulders
    Illustrate “half-mast” chart patterns such as flags and pennants
    Demonstrate methods for determining price objectives from patterns
  • 11 Short-Term Patterns
    Analyze reversals in longer-term trends using short-term price patterns
    Interpret the significance of various types of gaps that occur on price charts
    Compare and analyze wide-range and narrow-range bars and their implications for volatility
    Diagram one- and two-bar reversal patterns
    Draw common candlestick patterns and analyze their significance within a trend
  • 12 Single Candle Lines
    Interpret market psychology from candle shapes
    Diagram and interpret notable individual candles: hammer, hanging man, doji and others in this chapter
    Demonstrate the importance of such candles in the context of trends
    Differentiate between the buying and selling activity represented by real bodies and shadows in these candles
  • 13 Multi-Candle Patterns
    Diagram and interpret notable patterns formed by multiple candles: engulfing, stars, windows and others in this chapter
    Demonstrate the importance of the prevailing trend when interpreting candle patterns
    Differentiate between the buying and selling activity represented by real bodies and shadows in these candle patterns
    Interpret candle patterns for support and resistance
  • 14 Candle Pattern Forecasting and Trading Techniques
    Analyze candle patterns on charts for indications of trend reversal and continuation
    Interpret candle patterns for support and resistance indications and confirmation
    Illustrate how to combine Western technical indicators with candles
    Employ candlestick analysis for risk management
    Demonstrate using candles in multiple time frames
  • 15 Concepts in Cycle Theory
    Illustrate the causes of the “mid-cycle dip” and “3/4 cycle high”
    Analyze the implications of an inversion
    Examine the cyclical explanation for rounded tops and “V-bottoms”
    Interpret the implications of left and right translation
    Calculate a centered moving average (CMA) envelope
    Demonstrate the use of a valid trend line (VTL)
  • 16 Applied Cycle Analysis
    Diagram the steps to a comprehensive cycle analysis
    Differentiate tools that find cycles from tools that phase cycles
    Illustrate how to identify a dominant cycle with a spectrogram
    Compare the phasing of smaller harmonics to larger harmonics
  • 17 Options
    Explain the purpose of options markets
    List the major terms of an option contract
    Describe “the Greeks”
    Define implied volatility
  • 18 Understanding Implied Volatility
    Contrast historical and implied volatility when used in price analysis and forecasting
    Interpret implied volatility as the market’s estimate of possible future asset prices
    Calculate single-day implied volatility
    List the inputs to an option pricing model
  • 19 About the VIX Index
    Explain how the VIX is impacted by put-call parity and options supply
    Interpret the VIX as an indication of market sentiment
    Interpret changes in the VIX as part of a market forecast
    Calculate expected 30-day movement of an index or a stock
  • 20 Prospect Theory
    Compare utility theory and prospect theory
    Describe loss aversion
    Describe the single greatest limitation of prospect theory
  • 21 Perception Biases
    Describe each of the four perception biases covered in this chapter
    Illustrate how each of these biases might affect investor behavior
  • 22 Inertial Effects
    Describe each of the three inertial effects covered in this chapter
    Illustrate how each of these might affect investor behavior
  • 23 Analyzing Sentiment in the Stock Market
    Analyze the impact of insider activity on a security’s price action
    Compare insider buying versus insider selling
    Analyze short interest and the short interest ratio
    Interpret sentiment as drawn from surveys of investors and professionals
  • 24 Analyzing Sentiment in Derivatives Markets
    Interpret changes in futures open interest in the context of price action
    Analyze the Commitments of Traders report
    Employ options put/call ratios as sentiment indicators
    Interpret volatility data drawn from the options market
  • 25 Inferential Statistics
    Compare descriptive and inferential statistics
    Demonstrate the use of hypothesis testing to frame statistical tests
    Explain confidence intervals, statistical significance, and the base rate fallacy
    Compare coefficients of correlation and determination
    Differentiate between correlation and causation
    Examine the use of regression analysis in technical studies
  • 26 Correlation
    Compare Pearson’s and Spearman’s methods
    Describe the coefficient of determination and its uses
    Describe the importance of linearity and normality to useful correlation studies
    Analyze the effect of outliers on a regression study
    Describe homoscedasticity and heteroscedasticity and their effect on correlation and related calculations
  • 27 Regression
    Interpret values generated by regression, multiple regression and tolerance calculations
    Demonstrate the process of selecting meaningful predictor variables for multiple regression studies
  • 28 Regression Analysis
    Analyze the concept behind the ARIMA method
    Describe the ARIMA process
    Employ the results of the ARIMA forecast to generate trading signals
    Demonstrate use of linear regression to generate trading signals
    Illustrate the use of linear regression for relative strength studies
  • 29 Selection of Markets and Issues: Trading and Investing
    Differentiate between buy-and-hold, position, swing and day trading, and the use of technical analysis in each
    Compare significant factors in trading stocks versus futures
    Distinguish between bottom-up and top-down approaches
    Contrast secular and cyclical emphasis
    Explain the basic concepts of intermarket analysis
    Explain the principles behind relative strength analysis
    Compare four methods for calculating relative strength
  • 30 Intermarket Analysis
    Interpret the rotation of stocks, bonds, and commodities in the typical business cycle
    Describe methods of determining intermarket relationships
    Illustrate the importance of measuring correlation for portfolio diversification and asset selection
  • 31 Relative Strength Strategies for Investing
    Illustrate a general approach to a momentum strategy using relative strength
    Analyze the use of hedging and non-correlated assets in a long-only relative strength model
  • 32 A Stock Market Model
    Define an environmental model
    Contrast internal and external indicators
    Sketch the basic components of Davis’ Fab Five model
  • 33 A Simple Model for Bonds
    Categorize each of the four indicators in Zweig’s original model as internal or external
    Categorize the additional indicator in the modified version as internal or external, trend following or mean reversion
  • 34 Perspectives on Active and Passive Money Management
    Differentiate between alpha and beta
    Compare the Efficient Market Hypothesis with general concepts in behavioral finance and with the Adaptive Markets Hypothesis
  • 35 The Statistics of Backtesting
    Explain the statistical challenges faced when backtesting
    Analyze four important statistical features of time-series price data
    Illustrate why log returns are often used in backtesting
    Analyze three statistical concerns in backtesting
    Differentiate between signal testing and backtesting
  • 36 The Scientific Method and Technical Analysis
    Examine the possibilities and challenges of applying the scientific method to traditional technical analysis
    Analyze the three forms of the EMH as to their information content
    Explain “null hypothesis” as used in the scientific method
    State the five stages of the hypothetico-deductive method
    Critique the three consequences, articulated in this chapter, of adopting the scientific method in technical analysis
  • 37 Theories of Nonrandom Price Motion
    Analyze why the existence of nonrandom price motion is a premise of technical analysis
    Describe an “efficient market”
    Analyze behavioral finance as a theory of nonrandom price motion
    Illustrate the two foundations of behavioral finance
    Interpret feedback loops in price action
  • 38 Case Study of Rule Data Mining for the S&P 500
    Examine data mining and data-mining bias in testing trading rules
    Define and examine data-snooping bias in testing trading rules
  • 39 System Design and Testing
    Differentiate between discretionary and nondiscretionary systems
    Illustrate the advantages and disadvantages of nondiscretionary trading systems
    Inventory the five initial decisions for constructing a trading system per the authors of this chapter
    Distinguish between four types of technical trading systems
    Compare various metrics for evaluating trading systems such as profit factor, percent profitable, and average trade net profit
    Differentiate between methods of optimization
    Define “robustness” as it applies to trading systems
    Examine risk-adjusted performance metrics such as Sharpe, Sterling, and Sortino ratios

Have Questions??
Talk to Us!!