STA Education
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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.
The STA Diploma is an internationally recognised two stage qualification. The first stage, Diploma I, is a 2 hour multiple choice exam. Passing this exam is a prerequisite for taking the Diploma II exam, which is a 3 hour paper based examination.
The Diploma I exam is held four times a year in London (if sufficient demand), in March, July, September and December. It is a 2 hour, 120 question multiple choice exam. The exam is knowledge based with no interpretive elements and is typically held online in a supervised environment. Results will be provided by email within 24 hours.
The STA Diploma I and Diploma II exams are accredited by IFTA, and members who pass both exams are entitled to be registered as CFTe holders (on payment of a $50 accreditation fee to IFTA).
| Please note that from 2013 onwards, any candidates wishing to gain the STA Diploma qualification will have had to have passed both the Diploma I and II exams. |
The Diploma II exam is held in London in April each year with a second sitting usually in October/November. It is a 3 hour written exam which is primarily based around the interpretation of charts and report writing, but with a significant knowledge based short essay component.
Regional and overseas exam centres can normally be made available on a demand basis for both exams. Candidates may apply to sit the exam outside the UK at their own expense if a suitable exam centre can be found. For further information on this please contact info@sta-uk.org .
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 London at London School of Economics and The British Bankers Association and all teaching is by qualifed STA members. The courses are considered suitable for the annual PIA Continuous Professional Development Programme.
Diploma I Course |
This six week course prepares students for the STA Diploma I examination, an internationally recognised qualification, accredited by IFTA. The next Diploma I Course will start in Autumn 2013 and will be held at the London School of Economics. It consists of six weekly evening lectures and a two hour multiple choice examination which will be held in December 2013.
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Diploma II Course |
This course will prepare students for the Diploma II examination in April 2014. The course will start in January 2014 and consists of 12 evening lectures spread over 12 weeks, a half day Exam Preparation session (including Report Writing) and both the Diploma I and Diploma II exams. |
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 info@sta-uk.org 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
Exam Preparation sessions are also often available before exams, covering report writing techniques and offering an chance to clear up any specific queries before the exam.
For further details of courses please contact the STA office:
Tel: 0845 003 9549, +44 (0)20 7125 0038
Fax: +44 (0)20 7900 2585
Email: info@sta-uk.org
Course Detail
Week 1:
Introduction – fundamental/technical comparison – overview of chart types (Line, Bar, Candlestick, Point & Figure)
Line charts – construction – interpretation – advantages and disadvantages
Bar charts – construction – interpretation – advantages and disadvantages
Inside and Outside days – gaps - arithmetic/logarithmic scaling
Week 2:
Candlesticks – construction – interpretation – Marabuzo lines – advantages and disadvantages
Week 3:
Support and resistance – theory – identification - utilisation – breakouts – trend – trend and return lines – where and how to draw them – reversal and continuation patterns – target projection from patterns – Fibonacci numbers and retracements – exercises
Week 4:
Moving averages – types (simple, weighted and exponential) – positioning – combinations – interpretation
Momentum – definition – interpretation
Indicators/oscillators (RoC, RSI, MACD) – volume (OBV) – market breadth (A/D line) – relative strength – sentiment measures (AAII and VIX) – how to use them
Week 5:
P & F construction – interpretation – advantages and disadvantages – exercises
Week 6:
Dow Theory – Introduction to Elliott Wave Theory – how to use technical analysis strategically
The Overall Aim
The aim of the Diploma II 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.
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Bar charts. Gaps, islands, key reversals. Defining price objectives from gaps and patterns on bar charts. Arithmetic versus logarithmic scales.
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Moving averages - arithmetic, weighted, and exponential. Centred, non-centred and advanced. Single, double and multiple moving average crossovers. Moving envelopes, including Bollinger Bands.
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Candle charts and candle patterns.
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Point and figure charts. Construction, scale, box reversal, objective counting. Advantages and disadvantages compared to other types of chart.
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Dow Theory
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Chart patterns, e g triangles, flags, pennants, diamonds, broadening patterns, wedges.
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Reversal patterns and how to identify/anticipate them. Head and shoulders, spikes, double/treble/multiple tops and bottoms, rounding tops and bottoms.
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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.
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Consolidation - how and why it occurs. Breakouts and how to recognise them.
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Corrections: when and how far.
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Support and resistance. The various chart points and facets that can act as such.
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Gann theory.
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Elliott wave theory.
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Fibonacci series, Fibonacci retracements and extensions.
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Cycles. Amplitude, length, phase, harmonicity, synchronicity, left and right translation. Detrending.
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Relative performance and how to interpret relative strength charts.
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Momentum indicators and oscillators including:Rate of change - Welles Wilder's RSI - Stochastics (%K & %D), Moving Average Convergence Divergence (MACD),Directional Movement Indicator - Parabolics - Commodity Channel Index
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Volume signals and indicators, including On-Balance Volume. Open interest.
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Breadth indicators.
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Sentiment indicators and contrary opinion. Investor psychology - individual and group.
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Market Profile™ including Construction, TPO, Point of control, Value Area, Normal Day, Trend Day, Double Distribution Day, Neutral Day, Non Trend Day
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Ichimoku Charts, including Turning Line, Standard Line, Span 1 and Span 2, Lagging Line, Cloud construction and interpretation.
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Behavioural Finance history, the brain and money, Prospect Theory, mental accounting, overconfidence and other biases. Behavioural Finance and you, the markets and investment professionals.
- Using technical analysis to control trading risk. Defining trade risk. Trade risk management techniques. Money management techniques.
Murphy, John J. |
Technical Analysis of the Financial Markets |
Pring, Martin |
Technical Analysis Explained |
Kirkpatrick, Charles D Dahlquist, Julie R |
Technical Analysis: The Complete Resource for Financial Market Technicians |
Nison, Steve |
Japanese Candlestick Charting Techniques |
Kirkpatrick, Charles D Dahlquist, Julie R |
Technical Analysis: The Complete Resource for Financial Market Technicians |
| Lambert, Clive | Candlestick Charts |
du Plessis, Jeremy |
The Definitive Guide to Point and Figure |
Plummer, Tony |
Forecasting Financial Markets |
Prechter, Robert |
R N Elliott's Masterworks, the Definitive Collection |
Elliott, Nicole |
Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds |
Linton, David |
Cloud Charts: Trading Success with the Ichimoku Technique |
Keller, David |
Breakthroughs in Technical Analysis (chapter on Gann) |
Grafton, Christopher |
Mastering Hurst Cycle Analysis |
Sperandeo, Victor |
Trader Vic: Methods of a Wall Street Master |
| Bernstein, Peter | Against the Gods – The Remarkable Story of Risk |
Schwager, Jack & Seykota, Ed |
Hedge Fund Market Wizards |
The Diploma II Course 2014 will run January - April 2014. Booking will open in the autumn.
Single Sessions
As part of our policy of offering educational opportunities to members, the Education Committee have agreed to open up the Diploma II 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.
Sessions are priced at £250 each, or £200 if five or more sessions are booked at the same time.
This is a self-study CD rom for those unable to attend the weekly lectures. The Home Study program is divided into 12 units designed to cover all relevant aspects of the Diploma I and II examination syllabus. Each unit caries a series of multiple choice questions to test the student’s understanding of each topic.
In addition to the HSC course materials, students are also advised to read further on each subject. Reference text guidance and recommended reading are provided at the end of each unit.
Advice on writing reports and commentaries is also included in the Appendix of the CD-ROM. The HSC was developed over several years and is the result of extensive collaboration between analysts and system providers around the globe.
Details of the course are here
The next Diploma I Exam will be 2 July 2013, and is bookable here.
The next Diploma II Exam will be 9 October 2013, and is bookable here.