EdX

Trading - Fundamentals of Technical Analysis (edX)

Trading - Fundamentals of Technical Analysis (edX)

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.

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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.
In addition to charts, technical analysts also use indicators and various theories to forecast the direction of prices through the study of past market data.
We focus on defining and applying momentum indicators to make buy and sell decisions. Instead of simply explaining and illustrating popular indicators like moving averages, RSI, MACD and stochastics, we review historical back tested results of each indicator so that you can objectively evaluate their performance.
Indicators based on the sentiment of various groups are analyzed and breadth indicators are explained.
In addition to indicators, theories applicable to trading are studied.
This course is part of the Introduction to Trading with Technical Analysis Professional Certificate.

What you'll learn

  • 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

Syllabus

Mod01 - Background and Basics
Mod02 - Why Technical Analysis Works
Mod03 - Constructing and Interpreting Charts
Mod04 - Chart Patterns
Mod05 - Introduction to Technical Indicators
Mod06 - Testing Technical Indicators
Mod07 - Relative Strength
Mod08 - Technical Theories
Mod09 - Psychology of Trading

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