Technical Analysis - An Introduction
Objectives
The course is designed to provide a comprehensive overview of the essential concepts and techniques of Technical Analysis as practised today by many analysts, fund managers and traders in the capital markets. It is expected that certain insights from the additional framework provided by technical analysis will be useful in supplementing other macro-economic modelling tools available to financial professionals, and will assist them in the process of understanding better and even anticipating important market inflection points.
Target Audience
The course is suitable for both those who have exposure to the tools of technical analysis as applied to the understanding of financial markets, as well as those who are new to the topic. It is relevant to traders or investors in any asset class or market.
Structure of the Course
The course covers two days of lectures which will feature many specific examples and case studies. Each day will consist of four separate ninety minute sessions with coffee breaks in the morning and afternoon with a lunch break in the middle. There is no formal examination for the course but candidates will receive a certificate of attendance.
Course Tutor
Clive Corcoran
Clive is an FSA Registered Investment Adviser and currently advises private clients on how to practise long/short market neutral strategies. As an author he has written Long/Short Market Dynamics: Trading Strategies for Today’s Markets which was published by Wiley in 2007 and his articles have appeared in Traders’ Magazine and Active Trader.
In recent years he has been a frequent contributor to CNBC’s European Closing Bell and has also been a speaker at international trading expos and workshops. Currently Clive is writing a new book focused on examining limitations in current macroeconomic theory, especially relating to market liquidity, and how insights from technical analysis and other disciplines can contribute to a better understanding of systemic financial risk.
Course Outline
Session 1 - The rationale for studying Technical Analysis (TA)
- Why study Technical Analysis?
- Contrast between fundamental analysis and technical analysis
- How does TA fit with the Efficient Markets Hypothesis?
- Overview of price patterns
- Synopsis of historical TA literature – Dow, Elliot, Gann, Wilder
Session 2 - Fundamentals of Charting and Pattern Analysis
- Charting as foundation of TA
- Principal chart types
- Candlestick charts – history and contemporary usage
- Point & Figure and Ichimoku Charts
- Effective patterns and how to trade them
Session 3 - Trends and Moving Averages
- Identification of short, medium and long-term trends
- Trend channels – support/resistance
- Moving averages as foundation of trend analysis
- Types of moving averages – simple, exponential and strengths/limitations of each.
- Gaps, congestion and breakaway patterns
Session 4 - Volume, Money Flow and Momentum
- Volume as a leading indicator
- ?Smart Money” – does it really exist?
- Momentum indicators and oscillators
- On Balance Volume (OBV), Money Flow Index (MFI) and Moving Average Convergence and Divergences (MACD)
- Accumulation/Distribution
- How momentum interpretation is used in trading strategies
Session 5 - Technical divergences & market dissonance
- Divergences between price and volume, price and momentum etc.
- Reversal patterns and major inflection points - how to identify/anticipate them.
- False breakouts and non-confirmations
- Divergence between the MACD and closing price, MFI or OBV and the closing price.
- Corrections- when and how far will they go?
Session 6 - Volatility, Liquidity and Correlations
- Different ways of measuring volatility
- Relationship of liquidity and volatility
- Heightened sector and asset class correlations associated with increased volatility
- Volatility clustering – market regimes etc.
- Algorithmic trading and volatility?
- Interpreting the CBOE Volatility Index (VIX)
Session 7 - Elliott Wave Theory, Cycles and Miscellaneous Indicators
- Explanation of the basics of Elliot Wave theory
- Market cycles - amplitude, length, phase etc.
- Directional Movement Index
- Commodity Channel Index
- Fibonacci ratios, fan lines, arcs etc.
- Psychology of fibonacci retracements
Session 8 - Trading strategies inspired by Technical Analysis
- Inter-market analysis and strategies
- Sector rotation strategies
- Liquidity conditions and financial contagion.
- Technical analysis of exchange traded funds (ETF’s)
- Co-movements of different asset classes
- Overview of some technically driven “quant” models.
Details of the next seminar
Date: TBA
Venue: Thomson Reuters, 30 South Colonnade, Canary Wharf, London, E14 5EP
This will be a joint ICMA / Thomson Reuters run course. Thomson Reuters is the leading source of intelligent information for the world's businesses and professional and is powered by the world's must trusted news organization.
Costs
The costs will be £1000.00 for ICMA Members and £1,300.00 for non-members. Current Thomspn Reuters customers who are personally registered as a Thomson Reuters product user are also entitled to the ICMA Member discount. The following discount scale is offered: 2-4 candidates - 5% discount each*
5+ candidates - 10% discount each
*Please note the discounts are applied by way of a refund to the organisation when registration has closed and the final number of candidates from the firm has been determined.
Note that anyone requiring accommodation to take the course will be required to arrange this on their own; it is a classed-based but non-residential course.
For more information
This course is also available on a group booking basis, for more information please email ta@icmacentre.ac.uk.
