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Page 1: Vskills Technical Analyst Brochure

Certified Technical Analyst

VS-1009

Page 2: Vskills Technical Analyst Brochure

Certified Technical Analyst

www.vskills.in

CCCCertified ertified ertified ertified Technical AnalystTechnical AnalystTechnical AnalystTechnical Analyst

Certification CodeCertification CodeCertification CodeCertification Code VS-1009 Vskills Vskills Vskills Vskills certification is a program for candidates seeking a career in technical analysis. The

study focuses on understanding the market actions and analyzing the changes that occur

over a period of time. The certification intends to build skills required to assess the overall situation concerning stocks by analyzing technical indicators, such as breadth of market data, market sentiment, momentum, and other indicators and thereby perform security

analysis used for forecasting the direction of prices.

Why should one take this certification?Why should one take this certification?Why should one take this certification?Why should one take this certification? The Course is intended for professionals and graduates wanting to excel in their chosen

areas. It is also well suited for those who are already working and would like to take

certification for further career progression. Earning Vskills Technical Analyst Certification

can help candidate differentiate in today's competitive job market, broaden their

employment opportunities by displaying their advanced skills, and result in higher earning

potential.

Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification? Job seekers looking to find employment in the field of financial services, banking,

investment, insurance or stock broking can benefit from this certification program.

Students generally wanting to improve their skill set and make their CV stronger and

existing employees looking for a better role can prove their employers the value of their

skills through this certification

Test DetailsTest DetailsTest DetailsTest Details � Duration:Duration:Duration:Duration: 60 minutes

� No. of questions:No. of questions:No. of questions:No. of questions: 50

� Maximum marks:Maximum marks:Maximum marks:Maximum marks: 50, Passing marks: 25 (50%)

There is no negative marking in this module.

Fee StructureFee StructureFee StructureFee Structure Rs. 3,560/- (Rupees Three Thousand Five Hundred Sixty Only) + Service Tax as

applicable

Page 3: Vskills Technical Analyst Brochure

Certified Technical Analyst

www.vskills.in

Table of Contents

1. Market 1. Market 1. Market 1. Market BBBBaaaasicssicssicssics 1.1 Stock Market Terminology

1.2 Price Movements

1.3 Share Price Chart

2. Trendlines2. Trendlines2. Trendlines2. Trendlines 2.1 Meaning of Trend Lines

3. Dow Theory3. Dow Theory3. Dow Theory3. Dow Theory 3.1 First Tenet

3.2 Second Tenet

3.3 Third Tenet

3.4 Fourth Tenet

3.5 Fifth Tenet

3.6 Sixth Tenet

4. Volume4. Volume4. Volume4. Volume 4.1 Importance of Volume

4.2 Volume and Chart Patterns

4.3 Price Trends and Volume

5. Price Charts5. Price Charts5. Price Charts5. Price Charts 5.1 Types of Charts

5.2 Other Price Charts

5.3 Support

5.4 Resistance

6. Candlestick Chart Patterns6. Candlestick Chart Patterns6. Candlestick Chart Patterns6. Candlestick Chart Patterns 6.1 History

6.2 Formation

6.3 Basic Chart Patterns

7. The Ellio7. The Ellio7. The Ellio7. The Elliott Wave Principlett Wave Principlett Wave Principlett Wave Principle 7.1 Wave Degrees

7.2 Basic Sequence

7.3 Fractal Nature

Page 4: Vskills Technical Analyst Brochure

Certified Technical Analyst

www.vskills.in

8. Technical Indicators8. Technical Indicators8. Technical Indicators8. Technical Indicators 8.1 Simple Moving Average (SMA) Model

8.2 The Exponential Moving Average (EMA) Model

8.3 Moving Average Convergence Divergence (MACD)

8.4 Oscillators

8.5 Bollinger bands

8.6 Average Directional Index (ADX)

8.7 Parabolic SAR

9. Fibonacci Study9. Fibonacci Study9. Fibonacci Study9. Fibonacci Study 9.1 Overview

9.2 Arcs

9.3 Fans

9.4 Retracements

9.5 Time Zones

10. Trading Psychology10. Trading Psychology10. Trading Psychology10. Trading Psychology 10.1 Over Confidence

10.2 Anchoring

10.3 Confirmation

10.4 Loss Aversion

11. C11. C11. C11. Charting Softwaresharting Softwaresharting Softwaresharting Softwares 11.1 Common Features

12. Trading Rules with Technical Analysis12. Trading Rules with Technical Analysis12. Trading Rules with Technical Analysis12. Trading Rules with Technical Analysis 12.1 Map the Trends

12.2 Spot the Trend and Go With It

12.3 Find the Low and High of It

12.5 Draw the Line

12.6 Follow that Average

12.7 Learn the Turns

12.8 Know the Warning Signs

12.9 Trend or Not a Trend

12.10 Know the Confirming Signs

Page 5: Vskills Technical Analyst Brochure

Certified Technical Analyst

www.vskills.in

Course Outline

1. Market 1. Market 1. Market 1. Market BBBBasicsasicsasicsasics � Discusses the important terminologies used in the stock market such as meaning of

bull, bear, closing price, circuit breaker, intraday trading, stop-loss etc.

� Illustrates the various reasons that might cause movement in price such as falling

share price, changing market conditions, etc.

� Explains the functioning of share price chart and illustrates various situations such as

gaps, dead cat bounce etc.

2. Tre2. Tre2. Tre2. Trendlinesndlinesndlinesndlines � Explains the basics of trendlines such as the procedure of drawing a trendline,

meaning of intersecting trendlines, drawing trendlines on long-term charts etc

� Describes the different types of trendlines with examples – Upward and Downward

trendlines

3. Dow Theory3. Dow Theory3. Dow Theory3. Dow Theory � Describes the various types of trends in the first tenet of Dow Theory such as up-

trends, down-trends and corrections.

� Illustrates the three phases in the second tenet of Dow Theory such as accumulation

phase, public participation phase and excess phase.

� Describes the functioning of the price of an asset in the third tenet of Dow Theory

and how the markets discounts all news

� Explains the concepts of stock market averages used in the fourth tenet of Dow

Theory

� Explains the role of volume in identification of price trend in the fifth tenet of Dow

Theory

� The sixth and the final tenet of Dow Theory states that the trends exist until definitive

signals prove that they have ended.

4. Volume4. Volume4. Volume4. Volume � Explains the meaning and importance of volume in technical analysis in terms of

trend confirmation and chart patterns

� Explains the relation of volume and chart patterns and the implication when volume

precedes price and the concept of breakouts

� Explains the relation between price trends and volume, analysis of trend volume and

the meaning of volume spikes

5. Price Charts5. Price Charts5. Price Charts5. Price Charts � Explains the purpose of price charts and the usage of time frames by traders as per

their trading style

� Describes the various types of charts such as line chart, bar chart and candlestick

charts.

Page 6: Vskills Technical Analyst Brochure

Certified Technical Analyst

www.vskills.in

� Describes the other price charts being used in the process of analysis such as Kagi

charts, Heiken Ashi candles and Renko charts.

� Explains the concept of “support”, its treatment and implications.

� Explains the concept of resistance, its functioning and the charts showing support and

trend in a range market and trending market

6. Candlestick Chart Patterns6. Candlestick Chart Patterns6. Candlestick Chart Patterns6. Candlestick Chart Patterns � Explains the history and evolution of candlestick charts

� Explains the concepts of candlestick formation such as long versus short bodies,

Morubozu, long versus short shadows, spinning tops, doji, hammer, inverted

hammer, hanging man.

� Explains the basic chart patterns to identify support and resistance such as double

tops and bottoms, head and shoulder patterns, bullish and bearish engulfing,

morning, evening and shooting stars, falling and rising wedge, flags and pennants etc.

7. The Elliott Wave Principle7. The Elliott Wave Principle7. The Elliott Wave Principle7. The Elliott Wave Principle � Explains the discovery of Elliot Wave principle and the various price patterns

emerging in the overall path of market development.

� Explains the notations and implications of different degrees of wave

� Explains the basic sequence of the impulse and corrective wave and their respective

movements

� Explains the fractal nature of Elliot wave, the three rules applied to 5-wave impulse

sequence and the important guidelines pertaining to Elliot wave

8. Technical Indicators8. Technical Indicators8. Technical Indicators8. Technical Indicators � Explains the importance and usage of technical indicators

� Describes the categories of technical indicators – leading and Lagging indicators

� Illustrates the Simple Moving Average (SMA) Model with example and charts

� Illustrate the Exponential Moving Average (EMA) Model, its numerical and graphical

representation

� Comparative analysis between SMA and EMA

� Explains the concept of Moving Average Convergence Divergence (MACD), its

graphical representation and various types of MACD lines

� Explain the leading technical indicator – ‘Oscillators’, relative strength index and

stochastic oscillators

� Explains the practice of Bollinger bands and ways in which it is used

� Explains the Average Directional Index (ADX)

� Explains the concept of Parabolic SAR

9. Fibonacci Study9. Fibonacci Study9. Fibonacci Study9. Fibonacci Study � Discusses the evolution of Fabonacci and the associated studies

� Explains the meaning and interpretation of Fabonacci Arcs

� Explains the meaning and interpretation of Fabonacci Fan Lines

� Explains the concept of Fabonacci Retracements

� Explains the interpretation of Fibonacci Time Zones

Page 7: Vskills Technical Analyst Brochure

Certified Technical Analyst

www.vskills.in

10. Trading Psychology10. Trading Psychology10. Trading Psychology10. Trading Psychology � Explains the various psychological biases that may affects while trading such as over

confidence, anchoring, confirmation, loss aversion

11. Charting Softwares11. Charting Softwares11. Charting Softwares11. Charting Softwares � Explains the common features of charting softwares such as charting, back testing,

optimization, scanner, alters, data feeds, custom indicators, platforms etc

12. Trading Rules with Technical Analysis12. Trading Rules with Technical Analysis12. Trading Rules with Technical Analysis12. Trading Rules with Technical Analysis � Explains the important rules that should be used in technical analysis such as – Map

the trends, Spot the trend, find the low and high of it, draw the line, follow that

average, learn the turns, know the warning signs, trend or not a trend and know the

confirming signs

Page 8: Vskills Technical Analyst Brochure

Certified Technical Analyst

www.vskills.in

Sample Questions

1. One of the most popular tools used by technical analysts is ___________.

A. P/E ratio

B. book-to-market-value ratio

C. moving averages

D. growth rate of dividends

2. A bar chart is used to illustrate ___________.

A. high, low and closing stock prices on a daily basis

B. reversal in the direction of stock prices without consideration of time

C. high, low, opening and closing prices on a daily basis

D. advances and declines of stock prices

3. According to the Dow Theory, daily fluctuations and secondary movements in the stock

market are used to identify the ___________.

A. intermediate trend

B. seasonal pattern

C. short-term trend

D. primary trend

4. Which of the following indicates a sell signal to technical analysts?

A. The advance-decline line is rising in a falling market.

B. The amount of short selling done by specialists is high.

C. The resistance level is broken.

D. The majority of stock market newsletters are bearish.

5. Which of the following indicates a buy signal to technical analysts?

A. Both the Dow Jones Industrial Average and the Dow Jones Transportation Average

are moving down.

B. Odd-lot buying exceeds odd-lot selling.

C. The advance-decline line is falling in a rising market.

D. The stock breaks through the moving average line from below.

6. Which of the following highlights traders' opinions about the market?

A. Sentiment indicators

B. Leading indicators

C. Moving averages

D. Breadth indicators

Page 9: Vskills Technical Analyst Brochure

Certified Technical Analyst

www.vskills.in

7. When odd-lot selling exceeds odd-lot buying, this is considered a ___________.

A. neutral signal

B. signal to switch from stocks to bonds

C. bullish signal

D. bearish signal

8. When technical analysts say a stock has good relative strength, they mean the

___________.

A. ratio of the price of the stock to a market index has trended upwards

B. recent trading volume in the stock has exceeded the normal trading volume

C. total return on the stock has exceeded the total return on other stocks in the same

industry

D. stock has performed well compared to other stocks in the same industry

9. A basic assumption of technical analysis in contrast to fundamental analysis is that

___________.

A. financial statements provide information crucial in valuing a stock

B. a technical analyst would evaluate the amount of short selling, the volume of

trading, and the P/E ratio of a stock

C. the stock market is inefficient

D. security prices move in patterns, which repeat over long periods

10. A resistance level is the price range at which technical analysts would expect the

___________.

A. demand of a stock to decrease substantially

B. demand of a stock to increase substantially

C. supply of a stock to increase substantially

D. supply of a stock to decrease substantially

Answers: Answers: Answers: Answers: 1 – C, 2 – A, 3 – D, 4 – B, 5 – D, 6 – B, 7 – C, 8 – A, 9 – B, 10 – A