Chartered Market Technician (CMT) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Question: 1 / 400

In a Point and Figure chart, when is a basic buy signal triggered?

When the current column of Os rises above the previous column of Os

When the current column of Xs rises above the previous column of Xs by one box

A basic buy signal in a Point and Figure chart is triggered when the current column of Xs rises above the previous column of Xs by one box. This signifies a bullish reversal and indicates that the price has moved sufficiently higher, validating stronger buying interest. The Point and Figure method focuses on price movements and eliminates time, making it essential to observe significant breaks in patterns to confirm new trends.

When the column of Xs rises above the previous column, it reflects increasing demand and a potential upward price momentum, which is a key component of the buy signal in this charting technique. This specific condition captures the market's intention to move higher, providing traders with a clearer entry point for buying into the market.

Get further explanation with Examzify DeepDiveBeta

When a breakout above resistance occurs

When the current column of Xs falls below the previous column of Os

Next Question

Report this question

Download Chartered Market Technician (CMT) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy