Education
Courses
Foundation Current Diploma Course
Previous Diploma Course Reference Material Training at LSE
Distance Learning Program
Forthcoming
Exams Syllabus
Core Reading IFTA CFTe Program
As
part of the STA's objective of promoting greater use and understanding
of technical analysis we offer structured courses in technical analysis,
which can lead to a successful result when taking the STA Diploma
exam.
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The STA Diploma
is an internationally recognised qualification and is part
of qualifying to be a member of the STA (MSTA).
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The exam is held
in London in November and April each year depending upon demand. Regional and overseas
exam centres can be made available on a demand basis.
Courses 2008
Foundation Course in Technical Analysis runs from November to December each year - application form is available in September
STA Diploma Examinations. The next exam will be in November 2008
STA Diploma Course . An Intensive STA Diploma Course will be this summer. Details and application form to follow
STOP PRESS
- Extra Notes from the Exam Preparation Day are available to candidates from info@sta-uk.org
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Associate members
of the STA can obtain copies of past exam papers by sending a copy
of the request form, which can be downloaded by clicking here,
to the STA Administrative address/fax number. If you have difficulty
in downloading or reading the form, please send an email to sta@pxltd.demon.co.uk giving your name and postal address and
a copy will be sent to you. Papers are available in a number of
formats and can be E-Mailed to you if required
STA Membership can
be part of the process of applying for the internationally recognised Certified Financial Technician and Masters of Financial Technical Analysis (MFTA) programmes.
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PLEASE
NOTE THAT ONLY MEMBERS OF THE SOCIETY CAN APPLY TO BUY PAST
PAPERS, SIT EXAMS, ATTEND LECTURES OR TAKE PART IN COURSES.
APPLICATION FORMS TO JOIN THE SOCIETY ARE AVAILABLE HERE
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Technical analysis has become an important part of
most investment house activity.
The STA is the professional body associated with technical
analysis. We run annual courses for both experienced and novice analysts. Courses are held in central London and all teaching is
by STA members. The courses are considered suitable for the annual PIA
Continuous Professional Development Programme.
The
following courses are available:
Foundation
Course Details
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Description
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| Introduction
– Definitions – Fundamental / Technical Comparison
– Charts – Line – Bar – Candlestick
– Point & Figure – Market profile |
| Support and Resistance
– Theory – Identification – Utilisation –
Practical exercise – Simple Buy and Sell Signals |
| Trend –
Definition – Trend Lines – Where to draw them
– Practical exercise. Moving Averages – Types
– How to calculate them – Positioning - Interpretation
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| Momentum –
Definition – Indicators – How to use them. Putting
it all together. Money Management |
| Dow Theory –
Introduction to Cycles – How to find them – How
to track them |
| Elliott Wave
Theory – Pattern – Time – Ratio – Gann
– Importance of Time – Proportion – Retracements
– Angles – Trading Rules |
Foundation
Course in Technical Analysis
The foundation course prepares students for the Diploma course
in technical analysis. The
next Foundation course runs November to December 2008. The application form will be available in September
STA
Diploma Course
The next diploma course ran Jan - Apr 2008
The
next STA Diploma examination was held 23 April 2008
Please note that students who have booked the complete course will be automatically entered for the Exam and Preparation Day
For further details of courses please contact the STA office:
Tel: +44 (0)20 7125 0038 Fax: +44 (0)20 7900 2585 or Email: sta@pxltd.demon.co.uk
STA
Diploma Course 2008
Course Material
QUESTION
for the Diploma course 10 Jan 2008 lecture:
The question and model answer is here
QUESTION
for the Diploma course 17 Jan 2008 lecture:
Candlesticks are ideal for all market analysis and are the best technique for Technical Analysis - discuss?
Suggestions for the Answer are here
QUESTION
for the Diploma course 24 Jan 2008 lecture:
QUESTION: (Refer to chart here)
You have been asked to give a recommendation on this security. Analyse the chart using Point & Figure tools:
1. Patterns
2. Targets
3. Trends
Highlight any significant points and give your recommendation.
Solution is here
QUESTION
for the Diploma course 31 Jan 2008 lecture:
QUESTIONS:
Q1) How would you describe a "Golden Cross?"
Q2) What is a "Dead Cross?"
Q3) Why are Bollinger bands self adjusting?
A1) The "Golden Cross" emerges when the short-term moving average breaks upward beyond the curve of the longer-term moving average, which may indicate the end of the downtrend and the start of the new uptrend.
A2) The "Dead Cross" emerges when the short-term moving average breaks downward below the curve of the longer-term moving average, which may indicate the end of the uptrend and the start of the new downtrend.
A3) Bollinger bands are plotted at standard deviation levels above and below a central moving average. Since standard deviation is a measure of volatility, the bands are self-adjusting: widening during volatile markets and narrowing during calmer periods.
QUESTION
for the Diploma course 7 Feb 2008 lecture:
QUESTIONS:
The Question and suggested ideal answer are here
QUESTION
for the Diploma course 14 Feb 2008 lecture:
QUESTIONS:
The Question and suggested ideal answer are here
QUESTION
for the Diploma course 21 Feb 2008 lecture:
What is the definition of a cycle and what are the cyclic principles?
The suggested answer can be found here
QUESTION
for the Diploma course 28 Feb 2008 lecture:
The Question is here (and in your handbooks)
The suggested answer can be found here
QUESTION
for the Diploma course 6 Mar 2008 lecture:
Please use your Elliott/Fibonacci knowings to implement one favored wave count and at least one alternative wave count based on the shown charts and explain how you have drawn your conclusions.
(Use the charts here and here)
QUESTION
for the Diploma course 13 Mar 2008 lecture:
Excercise is here
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STA
Intensive Diploma Course
STA Intensive DIPLOMA COURSE 2007 - FOR REFERENCE
Course Material
MARKET PROFILE EXERCISE
QUESTIONS:
- If the market opens inside the previous day’s value and the initial balance is of a typical range, how would you expect the rest of the day’s trading to normally develop.
- The market has opened above the previous day’s value area but inside of the previous day’s range. If the market breaks above the previous day’s high in period C or D, how would you expect the day to develop?
- If the market opened in the same manner as in question 2 but the previous day’s high was broken during the initial balance, would it be safe to assume that a trend day to the upside was quite likely? Give your reasons for either agreeing or disagreeing.
- The market gaps lower and has made a range extension to the downside. At the end of period D the market is trading towards the lows of the day and the high of the day was seen during period A. Do you consider the chances of a Trend Day (down) developing as being high, and which signs have you seen or would expect to see if your rating of a possible Trend Day were to be low ?
The answers are here
POINT & FIGURE EXERCISE
QUESTION: (Refer to chart here)
You have been asked to give a recommendation on this security. Analyse the chart using Point & Figure tools:
1. Patterns
2. Targets
3. Trends
Highlight any significant points and give your recommendation.
Solution is here
ICHIMOKU EXERCISE
QUESTION: (Refer to pdf here )
A copy of the presentation of 17 Oct 07 is here for those who would like a colour copy (NB large file ~ 6Mb)
GANN EXERCISE
QUESTION:
Gann Theory relies on having knowledge of the historic High or Low for any contract. This possibly leads Gann to be best used in the Commodity and other Futures markets where the lifetime of the contracts is restricted.
Discuss the above and compare with how you would apply Gann Theory in the Equity Market.
ANSWER:
Main points that must be mentioned are:
- Relevance of Historic High and Low as either the origin of the measure (for Gann fan) or measuring extremes (Gann Retracements)
- The Gann Fan origin is chosen at the high or low and the various 1x1, 1x2, 2x1 lines drawn
- Gann retracements are 1/8 from of the vertical distance between the high and the low
- Commodity and other futures contracts have a relatively short life which can be measured in a few years, but more commonly in months. This allows the analyst to use all of the data in order to get the High/Low.
- Unless analyzing a recent IPO, most equities have a very, very long history. The low may be many, many decades in the past and the fanlines when drawn from this low may be very far from current price.
- The “Weekend” effect. With Gann Fanlines the effect of a 5-day vs a 7-day week is not taken into account. The further back that the origin of a fan is, the worse this effect becomes. This effect does not happen in vertical (1/8th retracements).
- The answer may also mention the valid point that Gann focused mainly on the Commodity market, but candidates may also mention that he DID analyse the US stock (equity) market too.
In application to the Equity Market, candidate must say they are using a LOCAL key High or Low (eg 2007 high, 2007 low) in their analysis and that because of this the accuracy is going to be off, but Gann WILL indeed give good directions, even if the levels are a little bit out.
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STA
Diploma Course 2007
STA DIPLOMA COURSE 2007 - FOR REFERENCE
Course Material
ESSAY QUESTION
for the Diploma course 11 Jan 2007 lecture:
"Outline the most popular methods of Money Management. Comment on their usefulness to different sectors of the trading community"
ESSAY QUESTION
for the Diploma course 18 Jan 2007 lecture:
The question is downloadable from:
here (pdf format) or
here (ppt format)
and the answers are here and here
ESSAY QUESTION
for the Diploma course 25 Jan 2007 lecture:
What are the advantages and Disadvantages of Japanese candlestick charting? Can they be used in all markets?
The Answer is here
QUESTION
for the Diploma course 01 Feb 2007 lecture:
The chart for this weeks exercise can be downloaded here and the answer is here
ESSAY QUESTION
for the Diploma course 8 Feb 2007 lecture (Moving Averages):
On first impression, moving averages seem to be the ultimate technical tool. Explain what they are then discuss the advantages and disadvantages of using them.
Outline Answer is here
Further questions for your own answers!
1 – Discuss the advantages and disadvantages of using moving averages in TA?
2 – Which types of Moving Averages would you use in which situations?
3 – How might you address the problem of Whipsaws when using Moving Averages?
4 – In using Moving Averages, how do you decide what periods to use?
QUESTIONS
for the Diploma course 22 Feb 2007 lecture :
1. If the market opens inside the previous day’s value and the initial balance is of a typical range, how would you expect the rest of the day’s trading to normally develop.
2. The market has opened above the previous day’s value area but inside of the previous day’s range. If the market breaks above the previous day’s high in period C or D, how would you expect the day to develop?
3. If the market opened in the same manner as in question 2 but the previous day’s high was broken during the initial balance, would it be safe to assume that a trend day to the upside was quite likely? Give your reasons for either agreeing or disagreeing.
4. The market gaps lower and has made a range extension to the downside. At the end of period D the market is trading towards the lows of the day and the high of the day was seen during period A. Do you consider the chances of a Trend Day (down) developing as being high, and which signs have you seen or would expect to see if your rating of a possible Trend Day were to be low ?
Answers are here
QUESTIONS
for the Diploma course 1 Mar 2007 lecture :
A little bit of APPLICATION this week as opposed to an essay.
1. Use a monthly chart of Nikkei (TOKN). Can you see cycles simply by eyeballing? (Chart)
2. Apply an 11month simple, centred moving Average Does this help? (Chart)
3. Add 12 month Momentum into bottom panel Does raw momentum help? (Chart)
4. Superimpose a 12 month simple, moving average to raw momentum. An improvement? (Chart)
5. Go back to raw momentum. This time simply replace the raw momentum by its own 12 month simple moving average of the raw momentum (i.e. remove the raw momentum leaving the moving average only). Does this make things easier? (Chart)
6. Apply a 5 period moving average to the moving average obtained in 5. above. Does this give signals? (Chart)
7 Play around with values for the moving average and momentum values given above. Remember this is an exercise not an example.
8 (Not mentioned by Tony - but useful) Clear the screens until you have only the price action displayed. Apply Least Square Detrend. (Chart)
Charts of above displayed on Tuesday.
Do you like this sort exercise? Have a word on Thursday.
QUESTIONS
for the Diploma course 16 Mar 2007 lecture :
Name seven basic principles of Dow Theory and briefly explain what each one means.
Answers here |
Individual Sessions
As
part of our policy of offering educational opportunities to members,
the Education Committee have agreed to open up the Diploma course
to all members.
Following the
introductory session, all units are tutored by specialists in each
particular technique. This provides an ideal opportunity for members
to refresh or augment their knowledge in a formal structured environment
without having to commit to a long-term course.
Members complete the form here and return it to the office: Tel: +44 (0)20 7125 0038 Fax: +44 (0)20 7900 2585 or Email: Katie Abberton
For those unable to
attend courses, a Distance Learning Programme is being currently
developed. The work is progressing, but it is extensive using expert authors. When completed and a release date is known details will be posted here. The programme will comprise 12 - 15 units covering both
the Foundation and Diploma courses.
Forthcoming
Examinations
The next STA
Diploma Exam will be in Novwmber 2008.
The Overall Aim
The aim of the diploma examination is to confirm that the candidate possesses the professional knowledge, understanding and skills to pursue a career in technical analysis within the investment community. In particular, at the end of their training period qualified technicians are expected to have a good understanding of, and practical experience in, the major techniques listed below, together with a wide range of timing and analytical tools and indicators to enable them to select the most advantageous portfolios, trades, hedges etc. for their clients, their
employers or their own trading systems. The syllabus is therefore designed primarily to ensure that students will gain the necessary skills to pursue their careers to a more advanced level in a professional manner, and also to provide investors with the knowledge and confidence in technical analysis that will enable them to make better informed trading decisions.
Syllabus
1. Bar charts. Gaps, islands, key reversals. Defining price objectives from gaps and patterns on bar charts. Arithmetic versus logarithmic scales.
2. Moving averages - arithmetic, weighted, and exponential. Centred, non-centred and advanced. Single, double and multiple moving average crossovers. Moving envelopes, including Bollinger Bands.
3. Candle charts and candle patterns.
4. Point and figure charts. Construction, scale, box reversal, objective counting. Advantages and disadvantages compared to other types of chart.
5. Dow Theory.
6. Chart patterns, e g triangles, flags, pennants, diamonds, broadening patterns (megaphones), wedges.
7. Reversal patterns and how to identify/anticipate them. Rounding tops and bottoms, head and shoulders, spikes, double/treble/multiple tops and bottoms.
8. Trend. How to draw correct short, medium and long-term trendlines. Trend channels. Return lines and internal trendlines. Unconventional but useful trendlines. acceleration. Speed lines. Trend characteristics.
9. Consolidation - how and why it occurs. Breakouts and how to recognise them.
10. Corrections: when and how far.
11. Support and resistance. The various chart points and facets that can act as such.
12. Basic elements of Gann theory.
13. Basic elements of Elliott wave theory.
14. Fibonacci series, fan lines, arcs and time zones.
15. Cycles. Amplitude, length, phase, harmonicity, synchronicity, left and right translation. Detrending.
16. Relative performance and how to interpret relative strength charts.
17. Momentum indicators and oscillators including:
Rate of change - Welles Wilder's RSI - Stochastics (%K & D)
Moving Average Convergence Divergence (MACD) & MACD histogram
Directional Movement Indicator - Parabolics - Commodity Channel Index
18. Volume signals and indicators, including On-Balance Volume, Volume Accumulator etc. Open interest.
19. Breadth indicators.
20. Sentiment indicators and contrary opinion.
21. Market Profile™ including Construction, TPO, Point of control, Value Area, Normal Day, Trend Day, Double Distribution Day, Neutral Day, Non Trend Day
22. Investor psychology - individual and group.
23. Ichimoku Charts, including Turning Line, Standard Line, Span 1 and Span 2, Lagging Line, Cloud construction and interpretation.
Murphy, John J. Technical Analysis of the Financial Markets
New York Institute of Finance/Prentice Hall 1999
Latest or current edition
du Plessis, Jeremy The Definitive Guide to Point and Figure
Harriman House Ltd
Latest or current edition
Plummer, Tony Forecasting Financial Markets
Kogan Page 1998 (3rd edition)
Latest or current edition
Prechter, Robert R N Elliott's Masterworks, the Definitive Collection
New Classic Library, a division of
Elliott Wave International, Gainesville GA, USA 1994
Latest or current edition
Fischer, Robert Fibonacci Applications and Strategies for Traders
John Wiley & Sons, Inc 1993
Latest or current edition
RECOMMENDED (ADDITIONAL) READING
Sperandeo, Victor Trader Vic: Methods of a Wall Street Master
John Wiley & Sons Inc 1993 (paperback)
Latest or current edition
Schwager, Jack D. Market Wizards
New York Institute of Finance/
Simon & Schuster 1989
(HarperBusiness paperback 1993)
Latest or current edition
Schwager, Jack D. The New Market Wizards
Harper-Collins 1992
(HarperBusiness paperback 1994)
Latest or current edition
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