Technical Analysis Module (Intermediate) Practice Exam

Technical Analysis Module (Intermediate) Practice Exam

The Technical Analysis Module (Intermediate) Exam assesses your proficiency in utilizing technical analysis tools and indicators to analyze financial markets and identify potential trading opportunities. Earning this certification demonstrates your ability to leverage technical analysis for informed investment decisions.

Who Should Take This Exam?

This certification is ideal for individuals seeking to:

• Deepen Technical Analysis Knowledge: Investors and traders aiming to refine their technical analysis skills and explore advanced technical indicators.
• Enhance Trading Strategies: Individuals looking to incorporate technical analysis into their existing trading strategies for better market timing.
• Pursue a Career in Technical Analysis: Aspiring technical analysts seeking to develop expertise for potential careers in trading or research firms.

There are no formal prerequisites for taking this exam. However, a foundational understanding of basic technical analysis concepts and experience using charts is recommended.

Roles and Responsibilities 

• Technical Analyst: Conducting technical analysis of financial markets to identify trading opportunities and generate recommendations.
• Trader (Technical Focus): Utilizing technical analysis to execute trades based on market signals and chart patterns.
• Research Analyst (Technical Focus): Integrating technical analysis into research reports and investment recommendations.
• Portfolio Manager (Technical Analysis Integration): Incorporating technical analysis alongside other investment analysis methods for portfolio management.

These roles typically require additional qualifications, experience, and potentially a combination of fundamental and technical analysis expertise.

Exam Details

• Duration: 120 minutes
• No. of questions: 60
• Maximum marks: 100, Passing marks: 60 (60%); There is negative marking for incorrect answers.
• Certificate validity: For successful candidates, certificates are valid for 5 years from the test date.

Course Outline

The exam covers the following topics:

1. INTRODUCTION TO TECHNICAL ANALYSIS

• 1.1 What is technical analysis?
  • Price discounts everything
  • Price movements are not totally random
  • Technical Analysis: the basic assumption
  • Strengths and weakness of technical analysis
    • Importance of technical analysis
    • Weaknesses of technical analysis

2. CANDLE CHARTS

• 2.1 The charts
• 2.2 Candlestick analysis
  • One candle pattern
    • Hammer
    • Hanging man
    • Shooting star and inverted hammer
  • Two candle pattern
    • Bullish engulfing
    • Bearish engulfing
    • Piercing
    • Bearish harami
    • Bullish harami
  • Three candle pattern
    • Evening star
    • Morning star
    • Doji

3. PATTERN STUDY

• What are support and resistance linesSupport
  • Resistance
  • Why do support and resistance lines occur?
  • Support and resistance zone
  • Change of support to resistance and vice versa
  • Why are support and resistance lines important?
• Head and shoulders
  • Head and shoulders top reversal
  • Inverted head and shoulders
  • Head and shoulders bottom
• Double top and double bottom
  • Double top
  • Double bottom
  • Rounded top and bottom
• Gap theory
  • Common gaps
  • Breakaway gaps
  • Runaway/continuation gap
  • Exhaustion gap
  • Island cluster

4. MAJOR INDICATORS & OSCILLATORS

• What does a technical indicator offer?
  • Why use indicator?
  • Tips for using indicators
  • Types of indicator
  • Simple moving average
  • Exponential moving average
  • Which is better?
• Trend following indicator
  • When to use?
  • Moving average settings
  • Uses of moving average
  • Signals - moving average price crossover
  • Signals - multiple moving average
• Oscillators
  • Relative strength index
  • What is momentum?
  • Applications of RSI
  • Overbought and oversold
  • Divergence
  • Stochastic
  • William %R
  • Real life problems in use of RSI
  • Advanced concepts
• Moving average convergence/divergence(MACD)
  • What is the macd and how is it calculate
  • MACD benefits
  • uses of MACD
  • Money Flow Index
  • Bollinger Bands
• Using multiple indicators for trading signals
  • Price sensitive technique
  • Volume sensitive techniques
  • Composite methods
  • How to use tool kit of trading techniques
  • Trading market tool kit applications
  • Bull market tool kit application
  • Bear market tool kit application
  • Trading market changing to bull market tool kit application
  • Trading market changing to bear market tool kit application
  • Bull market changing to trading market tool kit application
  • Bear market changing to trading market tool kit application

5. TRADING STRATEGIES

• Day trading
  • Advantages of day trading
  • Risks associated with risk day trading
• Strategies
  • Strategies for day trading
  • Momentum trading strategies

6. DOW THEORY AND ELLIOT WAVE THEORY

• Introduction
• Principles of Dow Theory
• Significance of Dow Theory
• Problems with Dow Theory
• Elliot Wave
  • Introduction
  • Fundamental Concept
  • After Elliot

7. TRADING PSYCHOLOGY AND RISK MANAGEMENT

• Introduction
• Risk Management
  • Components of risk management
  • Stop loss
  • Analyze reward risk ratio
  • Trail stop loss
  • Booking Profit
  • Uses of stop loss
  • Qualities of successful trader
  • Golden rules of traders
  • Do's and don'ts in trading
• Rules to stop losing money
• Choosing the right market to trade
  • Importance of discipline in trading