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Previous Diploma Course Materials

Previous diploma course materials will be posted when available. These are questions set by the course lecturers and are reproduced here for the interest and advantage of Diploma Exam candidates.

Course Materials

STA DIPLOMA COURSE 2009

Course Material

Week 1: RISK CONTROL AND MONEY MANAGEMENT

QUESTIONS:

See here

ANSWERS:

See here

Week 2: SUPPORT AND RESISTANCE, TRENDS AND TRENDLINES, PATTERN RECOGNITION, PRICE OBJECTIVES

QUESTIONS:

See here

ANSWERS:

See here

 

Week 3: CANDLESTICKS

QUESTIONS:

Candlesticks are ideal for all market analysis and are the best technique for Technical Analysis - discuss?

ANSWERS:

See here

 

Week 4: Moving Averages

QUESTION & ANSWER

See here

 

Week 5: Market Profile

QUESTION & ANSWER:

See here

 

Week 6:

QUESTION:

See here

Additional Question (with answer) here

Week 7:

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

 

Week 8: Cycles

QUESTION & ANSWER:

See here and here

 

Week 9: Dow Theory

QUESTION & ANSWER:

See here

 

 

 

STA Intensive DIPLOMA COURSE 2008

Course Material

Week 1: MARKET PROFILE EXERCISE

QUESTIONS:

See pdf here

 

The answers are here

Week 2: INDICATORS EXERCISE

QUESTIONS:

See pdf here

 

The answers are here

Week 3: POINT & FIGURE EXERCISE

QUESTIONS:

See pdf here

 

The answers are here

Week 6: GANN EXERCISE

QUESTION:

Dow, Gann and Elliott – is there a common theme within their proposed techniques?  Which one would you try to encourage a new technician to use, and why?

 

The answers are here

 

 

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:

Exercise is here

 

 

 

STA Intensive DIPLOMA COURSE 2007

Course Material

MARKET PROFILE EXERCISE

QUESTIONS:

  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 ?

 

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:

  1. Relevance of Historic High and Low as either the origin of the measure (for Gann fan) or measuring extremes (Gann Retracements)
  1. The Gann Fan origin is chosen at the high or low and the various 1x1, 1x2, 2x1 lines drawn
  1. Gann retracements are 1/8 from of the vertical distance between the high and the low
  1. 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.
  1. 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.
  1. 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).
  1. 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.

 

 

STA DIPLOMA COURSE 2007

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