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Quantitative Technical Analysis provides a strategy for incorporating the

This course is part of the Introduction to Trading with Technical Analysis tools into an algorithmic format that can be automated or applied manually
Professional Certificate. in a disciplined manner. Combined, the courses provide all the information
needed to become a trader in any market around the world or an analyst
Let's take a quick look at the professional certificate as a whole. The specializing in technical reports of financial markets.
Introduction to Trading with Technical Analysis Professional Certificate is
designed to help you gain the knowledge you need to become a trader in This professional certificate is comprised of the following courses:
any market around the world or an analyst specializing in technical reports
of financial markets. 1. C01: Fundamentals of Technical Analysis (you're here
already!)
Technical analysis is a discipline that uses market data to define the state of 2. C02: Quantitative Technical Analysis
financial markets. It provides a framework to forecast the expected trend in
the market. Tools of technical analysis can be applied in any time frame. NOTE: Completing both courses is MANDATORY to achieve the edX
This makes them useful for day traders, individual investors managing Professional Certificate in Trading with Technical Analysis. A verified
retirement accounts or analysts preparing detailed reports that include learner must pass all courses in the program with a minimum grade of 70%
opinions on the likelihood of gains in a market. Because the analysis is to earn a Professional Certificate for Trading with Technical Analysis.
based solely on market data, technical analysis can be applied to individual
stocks, broad market indexes, futures contracts, cryptocurrencies, foreign
exchange or any other market. The information in these courses can be used
to develop a standalone trading methodology. It can also be used as a
supplement to fundamental analysis, using fundamentals to determine what
to buy or sell while using technicals to determine when to make the trades.
In this way, technical analysis helps an analyst add value to their reports.

Fundamentals of Technical Analysis focuses on defining the tools of

technical analysis including chart patterns and indicators.
Course Learning Objectives
By the end of this professional certificate, you will be able to: Understand
the fundamentals of technical analysis. Understand quantitative technical
analysis.
This course is designed to help you apply technical analysis as a
standalone trading methodology or as a supplement to fundamental
analysis using tools that are based on price action and other
technical principles.
This course has been broken into 2 sections:
1. Background and Charts
2. Practical Technical Theories
In order to apply technical analysis with confidence, it is important
to understand the theory of technical analysis, why it’s a rational
approach to market analysis, and how this discipline relates to
fundamental analysis and investor psychology. To build that
confidence, we begin with an explanation of how technical analysts
view the market in terms of supply and demand. We detail how the
analyst develops information about the relative strength of the bulls
and the bears through price charts and other tools. Price charts are
one of the primary tools of technicians. Charts provide a history of
market action and analysts can observe patterns in the chart. As
early as the 1930s, analysts determined that certain patterns tended
to precede certain price moves. This course reviews those patterns,
discusses how to identify the patterns, and supplements this with
concepts from behavioral finance to explain why the patterns are
predictive. Different chart types are presented including the most
popular formats (line charts, bar charts, and candlesticks) along
with less well-known but equally useful formats like point and
figure charts, Renko charts, and Ichimoku clouds. Important
charting concepts, including the definition and interpretation of
trendlines, gaps, and other concepts, are explained from a practical
perspective.
By the end of this section, you will be able to trade based solely on
chart analysis or have the knowledge to incorporate charts into your
analysis toolbox.
In addition to charts that were studied in the section - Background
and Charts, technical analysts also use indicators and various
theories to forecast the direction of prices through the study of past
market data. In this section, we focus on defining and applying
momentum indicators to make buy and sell decisions. Instead of
simply explaining and illustrating popular indicators like moving
averages, RSI, MACD, and stochastics, we review historical back-
tested results of each indicator so that you can objectively evaluate
their performance. Indicators based on the sentiment of various
groups are analyzed and breadth indicators are explained. Unique
indicators are presented in detail and trading strategies for
indicators are fully developed, once again including back-tested
results providing objective data on the accuracy of the indicators. In
addition to indicators, theories applicable to trading are studied.
These include relative strength analysis which is an application of
the momentum anomaly widely followed by fundamental analysts;
the oldest comprehensive market strategy, Dow theory, which was
developed in the 1800s and is still applicable since stock prices still
reflect economic growth; cycles, Elliott wave theory, Fibonacci
sequences, and Intermarket analysis.
By the end of this section, you will have familiarity with popular
technical tools and enough information to determine how you can
use their tools to trade the markets. You will be able to develop a
complete trading strategy that is suited to your personal preferences
for risk tolerance.
Course Learning Objectives:
1. Understand the fundamentals of technical analysis.
2. Understand quantitative technical analysis.
3. Apply technical analysis as a standalone trading methodology or
as a supplement to fundamental analysis.
Section 1: Background and Charts
Key Learning Points:
 Theory of Technical Analysis: Understanding why technical
analysis is a rational approach to market analysis.
 Relation to Fundamental Analysis and Investor Psychology:
How technical analysis complements fundamental analysis and
incorporates investor behavior.
 Supply and Demand: Analyzing market conditions in terms of
supply and demand dynamics.
 Price Charts: Developing information about market strength
through different types of price charts.
Chart Types Covered:
1. Line Charts: Simple representation of price movements over time.
2. Bar Charts: Detailed chart showing open, high, low, and close
prices.
3. Candlestick Charts: Visual representation of price action using
candlestick shapes to show market sentiment.
4. Point and Figure Charts: Focus on price movements without
considering time.
5. Renko Charts: Filters out minor price movements to highlight
significant trends.
6. Ichimoku Clouds: Provides a comprehensive view of support,
resistance, and trend direction.
Important Charting Concepts:
 Trendlines: Identifying the direction of market trends.
 Gaps: Understanding price gaps and their implications.
 Patterns: Recognizing chart patterns that precede price moves (e.g.,
head and shoulders, double tops/bottoms).
Outcome:
 Ability to trade based on chart analysis.
 Incorporate chart analysis into your broader analysis toolbox.
Section 2: Practical Technical Theories
Key Learning Points:

 Momentum Indicators: Using indicators like moving averages,

RSI, MACD, and stochastics to make trading decisions.
 Historical Back-testing: Evaluating the performance of indicators
based on historical data.
 Sentiment and Breadth Indicators: Analyzing market sentiment
and breadth to forecast price movements.
 Unique Indicators: Introducing less common but effective
indicators and their trading strategies.

Theories and Analysis Techniques:

1. Relative Strength Analysis: Comparing the performance of

different assets to identify potential trades.
2. Dow Theory: Understanding the oldest market strategy that reflects
economic growth through stock prices.
3. Cycles: Identifying recurring price patterns and cycles in the market.
4. Elliott Wave Theory: Using wave patterns to predict market trends.
5. Fibonacci Sequences: Applying Fibonacci retracements and
extensions to identify support and resistance levels.
6. Intermarket Analysis: Studying relationships between different
markets to forecast price movements.

Outcome:

 Familiarity with popular technical tools.

 Ability to develop a complete trading strategy suited to your risk
tolerance.
Background and Charts.

In this sections, we'll cover the following modules:

1. Background and Basics

2. Why Technical Analysis Works
3. Constructing and Interpreting Charts
4. Chart Patterns