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Quantitative Technical Analysis provides a strategy for incorporating the
This course is part of the Introduction to Trading with Technical Analysis tools into an algorithmic format that can be automated or applied manually Professional Certificate. in a disciplined manner. Combined, the courses provide all the information needed to become a trader in any market around the world or an analyst Let's take a quick look at the professional certificate as a whole. The specializing in technical reports of financial markets. Introduction to Trading with Technical Analysis Professional Certificate is designed to help you gain the knowledge you need to become a trader in This professional certificate is comprised of the following courses: any market around the world or an analyst specializing in technical reports of financial markets. 1. C01: Fundamentals of Technical Analysis (you're here already!) Technical analysis is a discipline that uses market data to define the state of 2. C02: Quantitative Technical Analysis financial markets. It provides a framework to forecast the expected trend in the market. Tools of technical analysis can be applied in any time frame. NOTE: Completing both courses is MANDATORY to achieve the edX This makes them useful for day traders, individual investors managing Professional Certificate in Trading with Technical Analysis. A verified retirement accounts or analysts preparing detailed reports that include learner must pass all courses in the program with a minimum grade of 70% opinions on the likelihood of gains in a market. Because the analysis is to earn a Professional Certificate for Trading with Technical Analysis. based solely on market data, technical analysis can be applied to individual stocks, broad market indexes, futures contracts, cryptocurrencies, foreign exchange or any other market. The information in these courses can be used to develop a standalone trading methodology. It can also be used as a supplement to fundamental analysis, using fundamentals to determine what to buy or sell while using technicals to determine when to make the trades. In this way, technical analysis helps an analyst add value to their reports.
Fundamentals of Technical Analysis focuses on defining the tools of
technical analysis including chart patterns and indicators. Course Learning Objectives market action and analysts can observe patterns in the chart. As By the end of this professional certificate, you will be able to: Understand early as the 1930s, analysts determined that certain patterns tended the fundamentals of technical analysis. Understand quantitative technical to precede certain price moves. This course reviews those patterns, analysis. discusses how to identify the patterns, and supplements this with concepts from behavioral finance to explain why the patterns are This course is designed to help you apply technical analysis as a predictive. Different chart types are presented including the most standalone trading methodology or as a supplement to fundamental popular formats (line charts, bar charts, and candlesticks) along analysis using tools that are based on price action and other with less well-known but equally useful formats like point and technical principles. figure charts, Renko charts, and Ichimoku clouds. Important charting concepts, including the definition and interpretation of This course has been broken into 2 sections: trendlines, gaps, and other concepts, are explained from a practical perspective. 1. Background and Charts 2. Practical Technical Theories By the end of this section, you will be able to trade based solely on chart analysis or have the knowledge to incorporate charts into your analysis toolbox.
In order to apply technical analysis with confidence, it is important
to understand the theory of technical analysis, why it’s a rational approach to market analysis, and how this discipline relates to In addition to charts that were studied in the section - Background fundamental analysis and investor psychology. To build that and Charts, technical analysts also use indicators and various confidence, we begin with an explanation of how technical analysts theories to forecast the direction of prices through the study of past view the market in terms of supply and demand. We detail how the market data. In this section, we focus on defining and applying analyst develops information about the relative strength of the bulls momentum indicators to make buy and sell decisions. Instead of and the bears through price charts and other tools. Price charts are simply explaining and illustrating popular indicators like moving one of the primary tools of technicians. Charts provide a history of averages, RSI, MACD, and stochastics, we review historical back- tested results of each indicator so that you can objectively evaluate Theory of Technical Analysis: Understanding why technical analysis is a rational approach to market analysis. their performance. Indicators based on the sentiment of various Relation to Fundamental Analysis and Investor Psychology: groups are analyzed and breadth indicators are explained. Unique How technical analysis complements fundamental analysis and incorporates investor behavior. indicators are presented in detail and trading strategies for Supply and Demand: Analyzing market conditions in terms of indicators are fully developed, once again including back-tested supply and demand dynamics. results providing objective data on the accuracy of the indicators. In Price Charts: Developing information about market strength through different types of price charts. addition to indicators, theories applicable to trading are studied. These include relative strength analysis which is an application of Chart Types Covered: the momentum anomaly widely followed by fundamental analysts; 1. Line Charts: Simple representation of price movements over time. the oldest comprehensive market strategy, Dow theory, which was 2. Bar Charts: Detailed chart showing open, high, low, and close developed in the 1800s and is still applicable since stock prices still prices. 3. Candlestick Charts: Visual representation of price action using reflect economic growth; cycles, Elliott wave theory, Fibonacci candlestick shapes to show market sentiment. sequences, and Intermarket analysis. 4. Point and Figure Charts: Focus on price movements without considering time. 5. Renko Charts: Filters out minor price movements to highlight By the end of this section, you will have familiarity with popular significant trends. technical tools and enough information to determine how you can 6. Ichimoku Clouds: Provides a comprehensive view of support, resistance, and trend direction. use their tools to trade the markets. You will be able to develop a complete trading strategy that is suited to your personal preferences Important Charting Concepts: for risk tolerance. Trendlines: Identifying the direction of market trends. Gaps: Understanding price gaps and their implications. Course Learning Objectives: Patterns: Recognizing chart patterns that precede price moves (e.g., head and shoulders, double tops/bottoms). 1. Understand the fundamentals of technical analysis. 2. Understand quantitative technical analysis. Outcome: 3. Apply technical analysis as a standalone trading methodology or as a supplement to fundamental analysis. Ability to trade based on chart analysis. Incorporate chart analysis into your broader analysis toolbox. Section 1: Background and Charts Section 2: Practical Technical Theories Key Learning Points: Key Learning Points:
Momentum Indicators: Using indicators like moving averages,
RSI, MACD, and stochastics to make trading decisions. Historical Back-testing: Evaluating the performance of indicators based on historical data. Sentiment and Breadth Indicators: Analyzing market sentiment and breadth to forecast price movements. Unique Indicators: Introducing less common but effective indicators and their trading strategies.
Theories and Analysis Techniques:
1. Relative Strength Analysis: Comparing the performance of
different assets to identify potential trades. 2. Dow Theory: Understanding the oldest market strategy that reflects economic growth through stock prices. 3. Cycles: Identifying recurring price patterns and cycles in the market. 4. Elliott Wave Theory: Using wave patterns to predict market trends. 5. Fibonacci Sequences: Applying Fibonacci retracements and extensions to identify support and resistance levels. 6. Intermarket Analysis: Studying relationships between different markets to forecast price movements.
Outcome:
Familiarity with popular technical tools.
Ability to develop a complete trading strategy suited to your risk tolerance. Background and Charts.
In this sections, we'll cover the following modules:
1. Background and Basics
2. Why Technical Analysis Works 3. Constructing and Interpreting Charts 4. Chart Patterns
A simple approach to technical analysis of financial markets: How to construct and interpret technical analysis charts to improve your online trading activity