Learn how to apply technical analysis as a standalone trading methodology or as a supplement to fundamental analysis using tools that are based on price action and other technical principles.
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 fundamental analysis and investor psychology.
To build that confidence, we begin with an explanation of how technical analysts view the market in terms of supply and demand. We detail how the analyst develops information about the relative strength of the bulls and the bears through price charts and other tools.
Price charts are one of the primary tools of technicians. Charts provide a history of market action and analysts can observe patterns in the chart. As early as the 1930s, analysts determined that certain patterns tended to precede certain price moves. This course reviews those patterns, discusses how to identify the patterns and supplements this with concepts form behavioral finance to explain why the patterns are predictive. Different chart types are presented and important charting concepts are explained from a practical perspective.
•Apply technical analysis as an important component of security analysis, especially when combined with fundamental analysis
•Understand how chart patterns reflect the principles of behavioral finance
•Apply specific technical strategies to the investment selection process
•Develop trading strategies based on technical theories
•Evaluate indicators and patterns based on quantitative analysis