Volume 7, Issue 3

Welcome to the CMT Program

Welcome to the May 2013 Administration of the CMT Program For those of you that are entering your first exam administration, congratulations on your decision to pursue your CMT designation the Gold Standard in Technical Analysis. If you plan on sitting for exam, please be sure to sign up as soon as possible to ensure your preferred time and location. As a reminder, registration and scheduling closes Wednesday, April 3, 2013 at 12:00 pm (noon). Your exam must be scheduled at Prometric by 12:00 pm (noon) EST on April 3rd. Whether you are advancing to the next level or need to retake a previous exam, please register today. IMPORTANT INFORMATION FOR ALL CMT CANDIDATES ALL LEVELS: Kirkpatrick and Dahlquist, Technical Analysis (both editions), Chapter 22 (System Design and Testing) has been added to the current recommended readings for the May 2013 examination. Be sure to include this chapter in your study schedule. Each administration there are several individuals that either wait until the end of registration, or even after the close, to schedule with a test center. They have been unable to schedule because all seats at the test center are reserved by other candidates. The MTA headquarter staff and Prometric (our vendor that administers the CMT exams) work diligently to accommodate all candidates, but seats are reserved on a first come first served basis. You might encounter difficulties securing the time and test center that you desire if you wait too long. Enjoy this issue of the CMT Newsletter. We wish you much success on your upcoming examinations.

CMT Prep Materials

Sample Question Booklets Level I: Book A | Book B Level II: Book A Level III: Book A Sample Quiz Questions Level I: Set A | Set B | Set C Level II: Set A

- The CMT Support Staff

Chart Construction

Charting the market can take many forms. As candidates in this certification program you are aware of many different ways to look at market action. We can look at price on a tick basis or a daily basis or perhaps annual basis. Much like a cardiologist viewing an electro cardiogram of the heart, the technical analyst looks at the price action of the issues under investigation. We can plot everything that trades or set limits as to time frame and price. The way we plot this activity is a matter of personal choice. Today, the three most common types of charts that record prices at given time intervals (such as hourly, daily, weekly, or monthly) are line charts, bar charts, and candlestick charts. Kirkpatrick and Dahlquist, Technical Analysis, 2nd Edition, Chapter 11, pg. 206. It seems the simplest chart to read and create is the basic line chart which is a mark on the chart at the end of a given time period, say a daily time period. You must decide if that is going to reflect the closing price or the average price of the issue during the assigned trading period. The line chart provide information about two variables, price and time. Kirkpatrick and Dahlquist, Technical Analysis, 2nd Edition, Chapter 11, pg. 207. The value of a line chart is that it removes much of the noise (fractals) from the chart and leaves the analyst with a clean view of the price action under investigation. A negative of this chart is the same as its positive, that by removing the noise (swings in the market) you could be losing valuable information that would help your analysis. A bar chart gives the analyst more information than is found on the line chart. Each bar reflects the high, low, and close. Many times the open is also included as a tick mark on the bar. This information clearly shows the high and low of the issue and also lets the observer know if the issue opened higher than the close of the previous time frame. Information regarding the thrust (momentum or rate of change) of the trade is also seen by looking at the range of that the issued traded. Patterns are not as clearly seen on a bar chart as on a line chart, but the information is more complete. A candlestick chart adds more information than is found on the line or bar chart. A candlestick chart may have candles with bodies, tails and wicks. The body of the candlestick can be filled or empty and describes the action of the issue between the opening and closing prices. The wick reflects the high and the tail or shadow the low. A filled candlestick (could be red) tells the observer that the issue closed lower than where it opened and the empty candlestick (could be green) tells the observer that the candlestick closed higher than its opening level. Normally that information reflects an up day vs. a down day, however; there are instances where although the closing is above the opening the issue retreated when compared to the previous candlestick.

I would also add point and figure charts to the statement above about line, bar and candlestick being the most common charts used. Point and figure charts provide a clean way of noting the action of the issue. In this type of charting you must decide what change in a price will be noted (box size). It is up to the chartist to decide what price, or percentage, needs to be achieved to qualify as a notation on the chart. Point and figure charts reflect price only, no volume and no time. (Please note that the following section is about Market Profile, which is a topic that is NOT assigned on CMT Level I) Market Profile is a method of noting the actions of the issue by assigning a letter to each period under investigation. If you are looking at the price action of an issue during a 30 minute period, all prices traded during that 30 minutes will be noted by a letter. The Market Profile is created in a manner very similar to a point and figure chart. You can list every price on the left scale or create boxes that represent a price range. The most common way of plotting intraday data for Market Profile is to begin by placing the letter A in the boxes alongside the price at which the market traded. Kaufman, New Trading Systems and Methods, 4th Edition, Chapter 18, pg. 773. This method of charting was used by a local (a trader that trades his own money for his own account is called a local) at the Chicago Board of Trade (CBOT) as a method of trying to plot the trading for a day. Time brackets on commodity floors in the USA are 30 minutes long. That is why J. Peter Steidlmayer (a local) chose to use this method of price reporting distributions. Brackets on the floor were created to force traders to confirm and report their trades. If a trade was done in the first bracket the trader had to have his trade checker, a person who puts in the traders trading cards, enter the trades and confirm those trades with the person who bought or sold the trader the contracts or options. Market Profile seeks to illustrate the distribution of trades. By seeing when these trades are completed the traders understand more about their markets.

It is a known fact that most traders or locals (people who trade for their own accounts) flatten their positions at the end of the trading day. In other words, they try not to carry positions overnight because there is too much risk in doing so, and also margin requirements are affected by keeping the trade overnight. (There is too much risk for movement overnight which could affect the value of the contract, The liquidity, because the rings are closed during the off hours, could be a problem, it is much easier for the trader to flatten the days trades.) If we use half-hour intervals, called time/price opportunities (TPOs), then all prices that were traded during the first half-hour are marked with the letter A. The letter B is used for the second half-hour period, the letter C for the third period, and so on. Kaufman, New Trading Systems and Methods, 4th Edition, Chapter 18, pg. 773-774. At days end you have a chart that looks much like a bell-shaped curve on its side.

Supporting Resources
Knowledge Base http://go.mta.org/3425 This is an article written by Jeremy du Plessis, CMT for SFO magazine. It is informative explaining how to draw and use point and figure charts. This informational video will help you understand point and figure charting. Deciphering X's and O's SFO Magazine (August 2009 Issue) By Jeremy du Plessis, CMT, FSTA Here is the link to the video of Jeremy du Plessis, CMT, FSTA, presentation for the MTA Educational Web series. This is a very easy to understand video on point and figure. This video will help to provide an understanding about point and figure charts, as well as highlight the various uses of this popular charting method. This video is recommended for all levels of the CMT exam. http://go.mta.org/3426 The first video, link above, gives the viewer information about different types of point and figure charts as well as its history. Jeremy du Plessis, CMT, FSTA is the author of the assigned book; The Definitive Guide to Point and Figure, 2nd Edition, and on this video he describes different reversals, box sizes, percentage change box size etc. Concerns regarding the data to be used are also addressed. He asks; are you going to use tick data or price data? Are you looking at a long or short view? Daily charts include the high, the low or the close of the data on a daily chart. There are rules for everything. http://go.mta.org/3427

This is the continuation of the video on point and figure charting. Since this is assigned at all levels, it is highly recommended that you view these videos. They are clear and full of information that will be useful not only for charting but for passing the exams.

Practice Questions

CMT Level I
A doji candlestick indicates that A. the direction of trade will continue. B. the market is not in balance and is just resting. C. both bulls and bears are equally distributed and will continue in the current direction. D. the market is in transition where bulls and bears are in balance and that movement has stalled which is often a warning of a reversal. Answer: D Reference: Kirkpatrick and Dahlquist, Technical Analysis, 2nd Edition, Chapter 17, pg. 391

CMT Level II
Moving averages on point and figure charts are based on a number of A. columns. B. time periods. C. boxes in the horizontal count. D. directional changes seen in the period under investigation. Answer: A Reference: Jeremy du Plessis, The Definitive Guide to Point and Figure, 2nd Edition, Chapter 10, pg. 377

CMT Level III

Chart provided: Relative Strength Chart S&P 500 Materials Sector / S&P 500

Editors Notes: The numbers on the attached chart indicate the beginning of each calendar month. (1 being January, 2 = February, etc.) The letters A, B, and C represent October, November, and December respectively. These numbers and the years listed on the horizontal scale are supplied only in the interest of clarity. The red number on the scale has no significance. The Methods referred to below are from the du Plessis point and figure book.

Instructions for A.1. through A.4. Referring to the chart listed above, answer the following questions. Your answers should be brief. In most cases, the correct answer is a single number or a brief sentence.

A.1-A.4. (Chart 1) In early February 2017 there is an upside breakout from a congestion pattern at 27.3. A.1. (5 Points) (Chart 1) Using Method 1 to calculate the horizontal count, what is the width of this pattern? A.2. (5 Points) (Chart 1) Using Method 1 to calculate the horizontal count, what is the Anchor Point of this pattern? A.3. (5 Points) (Chart 1) Using Method 1 to calculate the horizontal count, what is the upside target of this pattern? A.4. (5 Points) (Chart 1) What would the target be if one had used Method 3? A.1-A4. (Chart 1) In early February 2017 there is an upside breakout from a congestion pattern at 27.3. A.1. (5 Points) (Chart 1) Using Method 1 to calculate the horizontal count, what is the width of this pattern? Answer: 9 (count across 26.7). du Plessis states that for Method 1 use the row with the most Xs and Os (pg 211). A.2. (5 points) (Chart 1) Using Method 1 to calculate the horizontal count, what is the Anchor Point of this pattern? Answer: 26.7 du Plessis states that the Anchor Point is the row that has the most filled boxes (pg 208). A.3. (5 points) (Chart 1) Using Method 1 to calculate the horizontal count, what is the upside target of this pattern? Answer: 29.1 (count up 9 boxes from 26.7) (note this is one box above the top of the chart, but the box size is stated to be 0.3, so I dont regard this extra bit of

math is a heavy burden.) du Plessis states that in Method 1 one adds the width of the pattern to the anchor point (pg 208). A.4. (5 points) (Chart 3) What would the target be if one had used Method 3? Answer: 28.8 (Count up 9 from 26.4) du Plessis states that using Method 3 one adds the width of the pattern to the base of the exit column (pg 211).

Helpful Preparation Tips

This is a part of an article found on the Web which discusses and suggests exam taking strategies. The advice given here is good and will help you understand and expand your exam taking skills. Remember on both the CMT Level 1 and Level 2 exams, you are not penalized for incorrect answers. A guess is far better than a blank. Information found at: http://go.mta.org/3433

Taking Multiple Choice Exams

Studying for a multiple choice exam requires a special method of preparation distinctly different from an essay exam. Multiple choice exams ask a student to recognize a correct answer among a set of options that include 3 or 4 wrong answers (called distractors), rather than asking the student to produce a correct answer entirely from his/her own mind. For many reasons, students commonly consider multiple choice exams easier than essay exams. Perhaps the most obvious reasons are that: 1. The correct answer is there, somewhere. (lucky guesses are possible) 2. Multiple choice exams tend to ask for simple information like single facts. 3. The exams usually contain many more questions thus each is worth a small amount of the grade. You can miss a few and still do OK. Tips when taking tests: Merely reading the questions and possible answers will stimulate your thinking. Sometimes the ideas in the questions will get you thinking about other parts of the exams. You may even find hints in one question that will help you answer other questions.

READ the whole question AND answers carefully.

What are the directions for the question? Questions may direct you to "Choose the false statement." "Choose the true statement." or "Choose the best answer." Some options may be "All of the above" or "None of the above." Make sure you know what the question wants you to do.

Time is sometimes short during exams. Longer exams require some time management. Here are some tips:

Answer the questions you are confident about first. (READ carefully though) Mark the ones you have not answered; do them later. Next, work on the questions that you can answer with a little thought. Save the really tough ones for later. Lastly work on the questions that remain. There should only be a few remaining. Work on them as you have time. Don't leave any question blank.

Some candidates do well by reading the question and then try to answer it without looking at the choices. Those who do well on essay exams can use this to advantage. Studies have shown that one in three candidates can score better with this strategy alone.

Read the question and scan the answers. Eliminate obviously wrong answers. Be careful of "all of the above" and "none of the above" questions. These are sometimes the correct choice but are also often used as a distractor to confuse candidates. Be sure the choices available pertain to the question. Sometimes correct statements are included which have nothing to do with the question you're working on.

Beware of negatives. If a negative such as "none," "not," "never," or "neither" occurs in the question then you're looking for a "catch." Read these carefully and be positive you understand the question. There will be an answer that matches even if your thinking is backwards.

Words such as "every," "all," "none," "always," and "only" are superlatives that indicate the correct answer must be an undisputed fact.

"Usually," "often," "generally," "may," and "seldom" are qualifiers that could indicate a true statement. Answer the questions without assuming too much. Don't be led astray by overanalyzing. Read the question and assume all the information is there for a reason.

What about when it's down to two possible answers?

Ask how the two answers differ (just the answers, ignore the question), maybe jot down how the two answers differ. Then look at the question again and ask yourself "how is this difference important for this question?" If you really think there's absolutely no difference between the two answers (e.g. just two words that mean the same thing), then look again at the answers you've eliminated - maybe one of them is actually the correct one.

Read the question over separately with each separate answer. Cover up all the other answers as you read the question over separately with each specific answer. This reduces the distracting effects of the wrong answers and can make it easier for you to see intuitively which answer makes better sense.

CMT Level III Test Taking Tips

The article below contains some information that will help candidates prepare to take the CMT Level III exam. It is written in general terms for preparing exams similar to the CMT Level III. The author discusses strategies for taking the exam and preparation techniques. I strongly suggest that you read this short article. http://certcities.com/editorial/tips/story.asp?EditorialsID=24

Preparation Tips for CMT Level III Recent CMT - Anonymous

Congratulation on pursuing the CMT designation! Many of you are probably excited and have registered or passed Level I and Level II exam. Level III exam is here to put all your technical analysis knowledge, experience and skills on the grill. As you may have already know the recommended readings help you prepare toward CMT, but there are more tools to guide you through the exam. MTA Staff, affiliates, and members have committed much of their personal time and resources to help you pass the exam, and most importantly to help you succeed in what you do with technical analysis. While I was preparing for the exams, I got most of my reading materials in kindle format (easier to carry and look up my notes, highlights, definitions, vocabularies), but I still had to read the books over and over again to strengthen my understandings of the material. I was having a difficult time trying to balance prioritizing work, family and study at the same time. Consequently, I turned to MTA for alternatives. Of course I knew about the newsletters, practice exams, articles; but I didnt know about the webinars, and videos on demand to reinforce/review your course of studies. Some of my personal favorites are as follow: Ethics: Michael Carr, CMT http://go.mta.org/3428

Point and Figure: Jeremy du Plessis, CMT, FSTA http://go.mta.org/3429 http://go.mta.org/3430

Elliott Wave: Walter Murphy, CFA http://go.mta.org/3431

CMT Informational: Jeanette Young, CFP, CMT, M.S. http://go.mta.org/3432

The presentations and the questions really made the books and materials come alive. The best of all they can be found in MTAs Knowledge Base. All you need to do is search, click and enjoy the show. Studying for the CMT Level III is laborious, but youre not alone and you dont have to do it alone. Leverage the Knowledge Base, blogs, and CMT Program Director (Jeanette Young). They are always on your side to encourage you and support you. I hope you will find this helpful. Heres a final advice. Stay the course and good luck! Warmest thoughts, Anonymous

Administrative Note

After you have paid the exam fee at mta.org, you will find the following instructions on how to schedule your exam:

Visit the Prometric website at http://www.prometric.com Enter Market Technicians Association into the orange search bar and select it from the results. Follow the on-screen prompts to reserve a seat at your desired location.

If you have any additional questions, please contact Marie Penza. If, after scheduling, you find that you need to reschedule your exam to the October 2013 test administration, please notify me via email by April 3, 2013. Then go to Prometric.com and cancel your appointment. At the Prometric website, once again, select K-M, then Market Technicians Association; select Cancel/Confirm My Test, then follow the prompts. Your Prometric confirmation number is located on the email confirmation from Prometric. Type in the confirmation number at the Prometric website as the site will not accept copy and paste. Be sure to cancel your appointment so as to avoid the 50USD rescheduling fee. If you are having difficulty registering online for the exam and need assistance, please call Marie Penza at 646-652-3300 x12; if you need help scheduling your exam, please email Marie Penza at marie@mta.org.

Requirements for the Exam

Body of Knowledge
The CMT exam tests the critical knowledge and tasks needed to perform the duties of a technical analyst. The tasks provide context for designing exam questions which reflect real professional responsibilities. These tasks were validated through a job analysis conducted in 2010 in addition to the recommendations made by the Test Specifications Committee. Careful and continual review of the discipline, the available literature, and the practical requirements of technicians, results in the Body of Knowledge upon which you will be tested. The CMT Program is designed for self-directed study under the guidance and support of the MTA. Each Level of the exam builds upon concepts from previous levels. While the knowledge is cumulative, exam questions will not reappear in subsequent levels. CMT III candidates are responsible for the readings assigned to all levels of the CMT Program curriculum.

Recommended Reading Lists

The books and chapters that the MTA recommends for successful completion of the CMT Program CMT Level I CMT Level II CMT Level III

To view an informational video presentation from the CMT Program Director, Jeanette Young, CFP, CMT click here. The three-part examination consists of: CMT Level I (120 scored items with a focus on definition). The CMT Level I examination measures basic, entrylevel competence and understanding of the candidate. The Level I candidate needs to have a working knowledge of the basic tools of the technical analyst. CMT Level II (170 questions of which 150 are scored). The exam is a combination of application and higher level definitions). The Level II exam requires the candidate to demonstrate a greater depth of analysis and competency. The Level II candidate is expected to demonstrate proficiency in applying more advanced analytical techniques. Overall, the candidate is responsible for the theory and application of concepts and techniques. CMT Level III (an essay examination with a focus on integration). The CMT Level III examination tests the candidate on the development of logical and consistent research opinions, portfolio strategies and trading decisions based on a wide range of charts and technical data. The Level III candidate must pass the ethics portion of this exam in order to be successful.

In 2004 the MTA commissioned the original body of knowledge study through Prometric to support the ongoing development of the CMT examination. A body of knowledge study is designed to obtain descriptive information about the tasks performed in a job and the knowledge needed to adequately perform those tasks. This body of knowledge study was the basis for the technical analysis material required to successfully pass the CMT examination process. In 2007, a Pulse Survey was taken to update the CMT test specifications to better reflect changes in the study of technical analysis. In response to continued changes in the study of technical analysis and membership growth, the MTA, with the

guidance of Prometric, completed the 2010 Job Analysis to ensure that the CMT exams reflect the knowledge and tasks required to perform technical analysis. To view this important document, please follow the link below.

The CMT Exam Program is designed to be SELF-STUDY

The CMT Support Staff recommends the following minimum study hours* for each Level of the CMT exam. Level I -- 100 hours Level II -- 140 hours Level III -- 160 hours *These recommendations assume each candidate has a college education and work experience in the financial markets. Recommended study time differs from person to person based on experience with the subject, time working in the field and prior knowledge of technical analysis. However, these rigorous exams require significant effort from any candidate wishing to successfully complete all three levels. Books for the CMT Program are not sold through the Market Technicians Association. However, anyone who is registered for the CMT Program may obtain a 50% discount on the published price of Jeremy du Plessis's book entitled "The Definitive Guide To Point and Figure" by following this link http://www.global-investor.com/mta. Books can be purchased through many retail distributors such as Amazon and via a dedicated webpage created by Trader's Library specifically for our candidates (www.invest-store.com/mta). If you have any questions regarding your purchases from this website, please contact Becky Dean at mbdean@traderslibrary.com. A limited number of copies of recommended readings are available to members and affiliates for short-term loan through the MTA Library at Baruch College. However, we recommend purchasing your own copy of each resource for reference throughout the CMT Program and your future career as a technician.

Download a printable PDF of the Body of Knowledge

Ethics
Ethics is tested on all three levels of this exam (domain 11 for CMT Level I and domain 10 for CMT Level II) but there are significant differences to each level. The Ethics questions on levels I and II are multiple choice single response answers. The Level III Ethics questions are in short answer/essay format. On Level III, if you fail the Ethics portion of the exam, you fail the exam. Please consider the following example from a past CMT candidate: The candidate scored 100% in all sections of the Level III exam except Ethics. All candidates are required to attain 70% of the Ethics section to pass. Unfortunately, this candidate failed that section of the exam. Even though the candidate earned 100% on all other sections of the exam, they had to retake the entire exam due to their performance on Ethics. The Code of Ethics can be found in each of the required reading documents. We have also included it at the right for your review. The Code of Ethics: http://go.mta.org/3381 On Levels I and II the ethics questions are relatively basic. If you have read the Code of Ethics it is likely that you will pass that portion of the exams. At Level III, we expect you to understand and to be able to identify violations in a story or scenario. We also test your ability to identify violations and non-violations. You must be able to discern whether or not a violation has occurred in a fictional example. This exam tests the application of the Code of Ethics thoroughly. We do not expect you to directly quote the code. but we do expect you to describe the violation that occurred. If there is no violation, we expect to see a simple response such as no violation. Q. How important are the questions on the MTA Code of Ethics? The MTA Code of Ethics is tested on all levels of the exam. In addition, candidates on Level III are required to achieve a minimum passing score of 70% on the Ethics section. This means that candidates must receive passing scores on the other sections of Level III and attain a passing score of at least 70% on the Ethics questions in order to pass. Candidates that do not attain a score of at least 70% on the Ethics questions will not pass the exam and will be required to sit for the entire exam again. Level III candidates should place an increased emphasis on the study of the MTA Code of Ethics.

Supporting Resources
The Knowledge Base is a place where various topics are discussed, where you will find sample questions, timely videos and other informative information regarding technical analysis. The Knowledge Base is a wonderful resource built for you. You can find information by topics or keyword search. You can expand your knowledge of a subject beyond the required readings by accessing The many resources in the Knowledge Base. A word of caution is that unless something is

specifically assigned to you, the information in the Knowledge Base will not be tested. If there is a difference in the information between the Knowledge Base and the assigned readings, please use the assigned materials. We have included two links below to two videos located in the Knowledge Base which cover Ethics. One lecture by Charles Comer, CMT is a presentation that was given at an MTA meeting in 2008. Mr. Comer breaks down the code of ethics and gives good examples of violations in his presentation. The second lecture is a more recent recording from Michael Carr, CMT. This video is specifically made to help you understand the Code of Ethics. We recommend that you watch both videos to help you prepare for your exams: http://go.mta.org/3379 http://go.mta.org/3380

There is one related item that the MTA would like to bring to your attention: confidentiality. We take the integrity of the exam very seriously and do not tolerate violations of confidentiality in any form. The Code of Ethics address confidentiality on a firm, client, and portfolio level but this concept extends into items such as rumors about others and private information. You will sign a confidentiality agreement at the beginning of each examination. If you do not sign the document you will not be allowed to proceed with your exam. The confidentiality agreement states that you will keep in confidence all information about the exam you are about to take. There have been instances where candidates have emailed others asking for information about the content of the exam they had just taken. This is a clear violation of confidentiality. It is wrong to ask. It is wrong to tell. And, it is wrong not to report any such violation to the MTA headquarters. The MTA was built on an unyielding ethical standard from its very beginning nearly 40 years ago. Protecting the integrity of the Chartered Market Technician exam is what made it the Gold Standard in technical analysis. MTA members and CMT charterholders worldwide represent leading financial institutions because they are qualified, high-performing and uphold the highest standard of ethics and integrity.

Market Technicians Association CODE OF ETHICS Amended December 2004 The Market Technicians Association has established ethical standards of professional conduct which every Member and Affiliate shall maintain. The Ethical Standards set forth in 1 through 9 serve as a guide of professional responsibility and as a benchmark for ethical judgment. 1. Members and Affiliates shall maintain at all times the highest standards of professional competence, integrity and judgment. Said standards should be maintained, and members and affiliates should act with dignity and in an ethical manner when dealing with the public, clients, prospects, employees, fellow Members and Affiliates and business associates. This ethical standard requires strict compliance with the applicable laws and regulations of any government, governmental agency and regulatory organization which has jurisdiction over the professional activities of Members and Affiliates. This same ethical standard requires that Members and Affiliates abide by the Constitution and By-Laws of the Association, and all rules promulgated by its Board of Directors. Members and Affiliates shall not unduly exploit their relationship with the Association for commercial purposes, nor use, or permit others to use, Association mailing lists for other than Association purposes. 2. Members and Affiliates shall not publish or make statements which they know or have reason to believe are inaccurate or misleading. Members and Affiliates shall avoid leading others to believe that their technically-derived views of future security price behavior reflect foreknowledge rather than estimates and projections subject to reexamination and, as events may dictate, to change. 3. Members and Affiliates shall not publish or make statements concerning the technical position of a security, a market or any of its components or aspects unless such statements are reasonable and consistent in light of the available evidence and of the accumulated knowledge in the field of financial technical analysis. New methods of technical analysis and modifications of existing concepts and techniques shall be fully documented as to procedure and rationale. Proprietary methods shall not be infringed, but this standard shall be a guide in the creation of proprietary products. 4. Members and Affiliates shall not publish or make statements which indefensibly disparage and discredit the analytical work of others. 5. Members and Affiliates shall not seek, disseminate or act on the basis of material, non-public (inside) information, if to do so would violate the laws and regulations of any government, governmental agency or regulatory organization relating to the use of inside information. 6. Members and Affiliates shall keep in confidence knowledge concerning the lawful private affairs of both past and present clients, employers, and employers clients. 7. When a Member or Affiliate recommends that a security ought to be bought, sold or held, adequate opportunity to act on such a recommendation shall be given to the Members or Affiliates clients, employer, and the employers clients before acting on behalf of either the Members or Affiliates own account or the accounts of immediate family members. 8. Members and Affiliates shall not copy or deliberately use substantially the same language or analysis contained in reports, studies or writings prepared by any author unless permission to do so is received, in advance, from the author. In the event the original author is deceased, or is otherwise unavailable to grant such permission, Members and Affiliates must ensure that the original author receives prominent and adequate credit for the original work. 9. Members who have earned the CMT designation shall use CMT after their name whenever and wherever appropriate.