Technical analysis and trading course

This course familiarises participants with principal charting theories.  With a particular emphasis on bar charting, the program investigates in detail the practical application of technical analysis to trading.

Trading course – day 1 of 3

  • Introduction to technical analysis and trading
    • Overview – structure and methodology for the course
    • Review of the basics of technical analysis
    • Practical challenges of day to day trading
  • Session 1: the relationship between technical trading and technical analysis
    • The theories behind technical trading
    • Underlying assumptions for market structures and market processes
    • Weaknesses of technical trading theory
  • Session 2: classical bar charts
    • Classical bar chart construction: minute, hour, day, week, month
    • The importance of time, volume and open interest
    • The power of contextual charts
  • Session 3: basic trend concepts
    • The definition of “trend”
    • The underlying structure of trends
    • Bull and bear
    • Horizontal and diagonal
    • Support vs. resistance
    • Pivots
Exercise.  Trend recognition.  Changing trends.  Redrawing trends.
  • Session 4: basic concepts in reversal patterns
    • Head and shoulders
    • Measurement
    • Tops and bottoms
    • Double
    • Triple
    • Measurement
    • Historical examples
Exercise.  Reconising reversal patterns.

Technical analysis and trading course – day two

  • Session 5: basic concepts in continuation patterns
    • Continuation patterns: triangles, flags, pennants, wedges, measurement, head and shoulders continuation, volume and open interest
    • Predictive characteristics of patterns
    • Measurement
    • Historical examples
    • More patterns – gaps, island reversals, key reversals
Exercise.  Recognising continuation patterns.
  • Session 6: complexity in bar charts
    • Developing hisorical narratives
Exercise.  Historical narratives.
  • Creating complex market narratives from multiple time horizons
Exercise.  Complex market narratives.
  • Session 7: practical bar charting
    • Charting precision
    • The role of probability
    • Structural integrity
    • Market dysfunction
    • Shocks
    • Market character
  • Session 8: bar charting and risk control
    • Market entry decisions
    • Self evaluation of trading risk parameters
    • Return on risk
    • Market exit decisions
    • Stop losses: static/ dynamic stops
    • Dynamic stops: evolving strategy
Exercise.  Risk control.

Technical analysis – day three course content

  • Session 9: other technical indicators – theoretical and practical strengths and weaknesses
    • Classical bar charts
    • Candlesticks
    • Point and figure
    • Moving averages
    • Bollinger band
    • Fibonacci
    • RSI
    • Stochastic
    • Elliot Wave
    • MACD
  • Session 10: combining technical indicators for trade selection
  • Session 11: inter market analysis and classical bar charting
  • Session 12: the role of technical analysis in different trading businesses
    • Proprietary trading
    • Market making
    • Fund management
    • Black box
    • Combining technical trading, sentiment trading and fundamental/ macro trading
    • Practical considerations

Technical training for your company

This course is only available for delivery inside your company. If you have 3-4 staff who are interested in a trading course, you will find that FTA is able to deliver you a cost-effective trading course.