Study Guide for the Second Edition of Technical Analysis: The Complete Resource for Financial Market Technicians

Now any trader (stock market, commodity, option, etc.) or prospective trader can master the skills of technical analysis with this up-to-date, hands-on study guide to accompany the popular text selected by the Market Technicians Association as the principal text for its prestigious CMT program. Charles D. Kirkpatrick II and Julie Dahlquist help readers learn, review, and master all key elements of technical analysis, preparing them to earn the Market Technician Association's prestigious CMT certification -- and, if they choose, apply their CMTs towards earning indispensable SEC Section 86 credentials. Fully aligned with the current Second Edition of Technical Analysis, this workbook-style book includes chapter learning objectives, chapter summaries, reviews of key terms and concepts, chapter questions, problems, solutions for all of the problems in the main text, additional questions and activities, multiple choice questions, student self quizzes, and more. It covers the full spectrum of issues, including tested sentiment, momentum indicators, seasonal affects, flow of funds, testing systems, risk mitigation strategies, and new advances in market analysis, portfolio selection, and systems management, and more.

Part I     Introduction

1     Introduction to Technical Analysis     1

2     The Basic Principle of Technical Analysis--The Trend     5

3     History of Technical Analysis     17  

4     The Technical Analysis Controversy     21  

Part II     Markets and Market Indicators 

5     An Overview of Markets     27 

6     Dow Theory     49 

7     Sentiment     57

8     Measuring Market Strength     65 

9     Temporal Patterns and Cycles     73

10     Flow of Funds     83 

Part III     Trend Analysis   

11     History and Construction of Charts     93

12     Trends--The Basics     109 

13     Breakouts, Stops, and Retracements     125

14     Moving Averages     137  

Part IV     Chart Pattern Analysis

15     Bar Chart Patterns     151  

16     Point-and-Figure Chart Patterns     167  

17     Short-Term Patterns     175 

Part V     Trend Confirmation  

18     Confirmation     195    

Part VI     Other Technical Methods and Rules  

19     Cycles     217    

20     Elliott, Fibonacci, and Gann     227 

Part VII     Selection  

21     Selection of Markets and Issues: Trading and Investing     235  

Part VIII     System Testing and Management   

22     System Design and Testing     243

23     Money and Risk Management     251  

Part IX     Appendices   

A     Basic Statistics     259 

Answer Key     269