CMT Association CMT Program CMT-Level-II Question # 33 Topic 4 Discussion
CMT-Level-II Exam Topic 4 Question 33 Discussion:
Question #: 33
Topic #: 4
Based on the chart given below; identify the best course of action:
A.
Shares are losing momentum which can be confirmed by negative divergence between price and ROC; trader should be cautious and be quick to reduce position on a violation of trendline.
B.
Shares are making a series of higher highs and higher lows; ROC has turned negative which is confirming the price action; should use current pullback to add to position.
C.
ROC has turned negative which is a sell signal; should initiate a short position.
D.
Negative divergence observed between price and ROC should be ignored as prices are near life time highs.
Chosen Answer:
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