Chartered Market Technician (CMT)
What Is a Chartered Market Technician (CMT)?
A chartered market technician (CMT\u00ae) is a professional technical analyst that holds the CMT designation organized by the CMT Association (formerly the MTA), a global credentialing body with almost 50 years of service to the financial industry. The CMT marks the highest level of training inside the discipline and is the superior designation for practitioners worldwide.
Technical analysis gives the instruments to effectively explore the gap between intrinsic value and market price across all asset classes through a disciplined, systematic approach to market behavior and the law of supply and demand. Earning the CMT designation shows that you have dominance of a core collection of information on investment risk in portfolio management, including quantitative approaches to market research and rules-based trading system design and testing.
Figuring out a Chartered Market Technician (CMT)
To be conceded a Chartered Market Technician (CMT\u00ae) designation, a candidate must finish three examination levels, complete the membership application process, and consent to the CMT Association's code of ethics.
To register for the CMT Program, people must pay the one-time $250 enrollment fee associated with the exam cycle. Subsequent to signing up for the program, candidates can then register for their most memorable exam. Each of the three levels of the CMT program exams are given on a computer at testing facilities or delegated from a distance. Beginning around 2019, CMT discontinued membership requirements for CMT candidates. Notwithstanding, member pricing for the exams contrasts from nonmember pricing.
Among industry practitioners, the CMT designation is widely viewed as the gold standard in technical analysis globally.
The CMT Exams
The purpose of the CMT Program is to advance the development of a candidate's professional information with respect to the study and application of technical analysis. The CMT Program is self-study. The educational program is accessible through Wiley: Efficient Learning.
CMT Level I
The CMT Level I exam measures fundamental, section level skill and comprehension of technical analysis. The Level I candidate necessities to have a working information on the fundamental devices of a technical analyst. When the primary level is effectively completed there is no time limit to elapse the subsequent levels. The CMT website states that the Level 1 exam measures fundamental, section level capability and understanding; the candidate needs to have a working information on the essential instruments of the technical analyst:
Registration costs for the CMT Level I are as per the following: for early registration, the cost is $295 for members and $470 for non-members; for standard registration, the cost is $395 for members and $570 for non-members, and for late registration, the cost is $595 for members and $770 for non-members.
| CMT Level I Topics Areas | |
|---|---|
| Content Areas | Percent |
| Theory and History | 9% |
| Markets | 5% |
| Market Indicators | 7% |
| Chart Construction | 5% |
| Trend Analysis | 16% |
| Chart and Pattern Analysis | 23% |
| Confirmation | 3% |
| Cycles | 5% |
| Selection and Decisionmaking | 13% |
| System Testing | 5% |
| Statistical Analysis | 6% |
| Ethics | 3% |
| Total | 100% |
The CMT Level II exam requires the candidate to show a greater depth of analysis and utilization of technical instruments. The Level II candidate is expected to exhibit capability in applying further developed scientific strategies and technical analysis theory. The MTA website states that the Level 2 exam requires the candidate to show a greater depth of analysis and utilization of technical devices. Candidates are expected to exhibit capability in further developed scientific methods and technical analysis theory.
| CMT Level II Topic Areas | |
|---|---|
| Content Area | Percent |
| Theory and History | 5% |
| Market Indicators | 8% |
| Chart Construction | 3% |
| Trend Analysis | 15% |
| Chart and Pattern Analysis | 15% |
| Confirmation | 6% |
| Cycles | 3% |
| Selection and Decisionmaking | 10% |
| System Testing | 10% |
| Statistical Analysis | 7% |
| Risk Management | 15% |
| Ethics | 3% |
| Total | 100% |
The CMT Level III exam tests the candidate on creating coherent and reliable research sentiments, portfolio strategies, and trading choices in view of a large number of charts and technical data. The Level III candidate is approached to examine case studies, make suggestions, and legitimize those proposals in light of the data gave.
All candidates must pass the ethics portion of this exam. Upon effectively finishing Level III, candidates can begin the membership cycle to acquire the Chartered Market Technician\u00ae Designation. The Level III exam requires the candidate to make a rundown, state and legitimize their analysis, or supply a comparable written response. The primary focal point of the exam is the functional and ethical application and integration of technical analysis.
| CMT Level III Topic Areas | |
|---|---|
| Content Areas | Percent |
| Ethics | 5% |
| Risk Management | 21% |
| Asset Relationships | 18% |
| Portfolio Management | 18% |
| Behavioral Finance | 10% |
| Volatility Analysis | 7% |
| Classic Methods | 21% |
| Total | 100% |
Notwithstanding the above-recorded requirements (breezing through three examination levels), finishing the membership application process, and consenting to the CMT Association's code of ethics, candidates must secure no less than three CMT Member references who can address the candidate's information, expertise, and ability in the field of technical analysis.
The CMT Association discontinued its membership requirement for CMT exam candidates. You might in any case decide to turn into an affiliate member before signing up for the CMT Program, yet it is not generally required. Be that as it may, member pricing for the exams varies from non-member pricing.
Furthermore, CMT candidates must complete somewhere around three years of professional work experience rehearsing technical analysis in their position.
Features
- These exams are viewed as the "gold standard" in the industry.
- The chartered market technician (CMT\u00ae) designation is a professional certification.
- To earn the designation, candidates must complete an intensive self-study program and pass a series of three extensive exams.
- Administered by the CMT Association, this program points not exclusively to foster technical and professional skills yet additionally to give a code of ethics and an ethical structure to work inside.
- It is earned by the people who can show broad information and aptitude in technical analysis and trading.
FAQ
The amount Do Chartered Market Technicians (CMTs) Make?
The median annual pay for a financial analyst is $83,660, as indicated by the Bureau of Labor Statistics (BLS). A CMT is a specific type of financial analyst with a median salary that is higher; roughly above $200,000, contingent upon the region and job.
How Do I Prepare for the CMT Level I Exam?
For the CMT Level I exam, the CMT Association suggests 100 hours of study time. For Level II and Level III, 140 hours and 160 hours are suggested, respectively. Third-party test suppliers approved by the CMT Association are accessible to help prepare for the exam however the official CMT educational program is suggested first.
How Do I Become a Chartered Market Technician (CMT)?
To turn into a chartered market technician (CMT), you want to take and pass each of the three levels of the CMT exam, become a CMT member, and afterward work in a related field — regularly one with a technical perspective in investment management — for no less than three years.
