Technical Analysis - CMT Level II Preparation

This comprehensive program is both an academic learning process and a hands-on exposure to intermediate technical analysis. It will also help prepare students for the level 2 Chartered Market Technicians (CMT) exam, which is a professional accreditation developed by the Market Technicians Association (MTA) for technical analysts. The topics will cover the major learning outcome statements that are set by the MTA - the outline represents a close approximation to the exact outline designated by the MTA. Students are expected to keep current for the latest required material set forth by the MTA in order to prepare for the Level II exam. Required textbooks are expected to be read by students prior to the session and will be used in class. The textbook authors include Prechter, Pring, Roth, Kaufman, Kirkpatrick, Wilkinson and Aronson. In addition, real-time market conditions will be examined.

Unlike other summary technical courses that just show technical principles, candidates will be taught to use the material learned and attempt to create profitable investing and trading strategies. Current market situations that students may experience in their work or personal experience in the bond, commodity, currency, equity, futures and options markets will be discussed in class. Sample problems from past actual cases will also be discussed, and recommended readings from leading textbooks will be listed for each section. Supplementary articles from business publications and academic journals will also be provided.

Guiding students will be the 25 years experience of John Palicka CFA CMT, who has managed billions of dollars with a top record.

No sessions currently available. Contact client services to get the next available date.
Portfolio managers, traders, asset allocators, behavioral economists, strategists, finance professionals, hedge funds and those wishing to take the CMT Level II Exam.
No advance preparation required.
Students will be able to:
  • Appreciate some of the more specialized approaches to technical analysis using waves, math and patterns
  • Understand the exotic approaches using Elliott Wave, Japanese Candlestick, and other approaches
  • Explain the role of behavioral finance and technical analysis
  • Describe the ethical and professional standards expected in technical analysis
  • Identify market turning points
  • Set measurement objectives for potential profits
  • Adjust, technical techniques to accommodate both trading and long-term investment objectives use intermarket analysis
  • Use intermarket analysis, statistical and probability analysis, and enhanced tests of significance
  • Take current investment situations in the stock, bond, commodity markets and attempt to achieve hands-on profits with technical analysis
  • Understand the role of quantitative techniques and artificial intelligence programs in technical analysis
  • Utilize derivatives in technical strategies
  • Be prepared for the requirements of the Market Technician's CMT Level II exam, as well parts of Level III
CMT Level I knowledge is essential Key learning points - *Trading techniques, dow theory and other market timing approaches, technical methods and trade-offs *Statistical and MPT considerations *Quantitative methods *Triangles, rectangles, head and shoulders, gaps, saucers, climaxes *Fans, bollinger, envelopes, channels *Trading: Day, swing, investing, asset allocation *Measurement rules *Trends, speedlines, retracements *Momentum analysis, oscillators, ROC, MACD, RSI *Derivatives, options, futures, swaps *Point and figure, GANN, Elliott Wave, Fibonacci numbers *Cycles *Ethics and professionalism
MTA Code of Ethics

    Elliott Wave Principle

    • The broad concept
    • Guidelines of wave formation
    • Historical and mathematical background
    • Ratio analysis and Fibonacci time sequences
    We do not guarantee that taking this course will result in passing the CMT exam, should students pursue the same. Candidates are expected to study the material and learn the knowledge requirements of the exam. We do not know the exact questions on the exam, and questions may be presented in different formats than the study material.

New Trading Systems and Methods
  • Introduction
  • Basic concepts
  • Charting
  • Charting systems and techniques
  • Regression analysis
  • Time-based trend calculations
  • Time-based trend systems
  • Momentum and oscillators
  • Seasonality
  • Cycle analysis
  • Volume, open interest and bredth
  • Spreads and arbitrage
  • Behavioral techniques
  • System testing
  • Risk Control

Technical Analysis Basics
  • Sentiment
  • Flow of funds
  • Breakouts, stops and retracements
  • Moving averages
  • Bar chart patterns
  • Short-term patterns
  • Confirmations
  • Cycles
  • Elliott, Fibonacci and Gann
  • Selection of Market and Issues:
  • Trading and investing
  • Money and risk management
  • Appendix A. Basic satistics

Japanese Candlestick Charting Techniques

  • Introduction
  • An historical background
  • Constructing the candlestick
  • Reversal patterns
  • Stars
  • More reversal patterns
  • Continuation patterns
  • Putting it all together

Investment Psychology explained and other Technical Tools
  • Various considerations on market psychology based on the LOS requirements of the MTA
  • Thse include fear and greed and various sentiment measures
  • The concept of relative strength price: group rotation
  • Why interest rates affect the stock market
  • Checkpoints for identifying primary stock market peaks and troughs

Technically Speaking and Evidence-Based Technical Analysis
  • This session incorporates the readings from Phil Roth's book
  • Statistical analysis
  • Hypothesis tests and confidence intervals
  • Data-mining bias: the fool's gold and objective TA
  • Theories of nonrandom price motion

Clients who register for this course will receive a complimentary 3 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscription, call 800-628-8088 or email uscirculation@ft.com. U.S. enrollees only. (All non-U.S. enrollees will receive a subscription to FT.com only.)

Lunch included for all students taking day classes.