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 qualification and is required to be a full Member of the STA (MSTA).
The exam is held in London in Autumn and Spring each year.
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.
Foundation Course |
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STA Diploma Course |
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
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.
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 and Market Profile)
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 STA 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.
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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 |
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 |
Kirkpatrick, Charles D Dahlquist, Julie R |
Technical Analysis: The Complete Resource for Financial Market Technicians |
| Lambert, Clive | Candlestick Charts |
| Linton, David | Cloud Charts, Trading Success with the Ichimoku Technique |
| Elliott, Nicole | Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds |
Sperandeo, Victor |
Trader Vic: Methods of a Wall Street Master |
Schwager, Jack D. |
Market Wizards |
Schwager, Jack D. |
The New Market Wizards |
The STA Diploma Course 2012 will run 11 January - 29 March 2012. The course is bookable here and full details are here.
The next STA Diploma Exam will be 18 April 2012, and is bookable here.
Please note that students who have booked the complete course will be automatically entered for the Exam and Preparation Day.
Single 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.
Sessions are priced at £250 each, or £200 if five or more sessions are booked at the same time.
Sessions may be booked here.
For those unable to attend taught courses, a Home Study Programme is available.
Details of the course are here
The next STA Diploma Exam will be 18 April 2012, and can be booked here.