Technical Analysis and Trading

What the resources cover

This unit is about reading price behavior on a chart. The notes begin with a definition: technical analysis is the study of how securities prices behave and how to use that to make money and avoid loss. From there the page branches into several areas.

• Candlesticks and price action: decks such as Intra-Day Candlestick Patterns describe patterns like the shooting star and the standard doji, with a strength rating and what each one signals.
• Moving averages: a run of notes goes from the basic definition to the 5 day EMA, the 50 day SMA and the 200 day SMA.
• Trader psychology and planning: notes on mental control, risk and reward, and building a trading plan.
• Market structure: mind maps on automated trading systems, market order types, MACD and trend channels.

Where to start

Begin with the note called Technical Analysis, which sets out the definitions. Next, work through the notes on what a moving average is and how to use moving averages. Then move to the candlestick decks, since many later resources assume you can recognize the main patterns.

Using quizzes and maps together

Read a mind map first to see how the ideas connect. The Automated Trading Systems mind map, for example, compares automated systems with floor trading on fairness, cost, speed and transparency. Then take a quiz on the same theme. The quiz called mm2 asks which approach suits a large order that should be traded quickly with little market impact. The Price Action Patterns quizzes and the CMT 1 Quiz on the Point and Figure chart help you test pattern recognition. Note what you miss, then return to the matching deck or note.

Where it fits

This unit sits in the Financial Markets and Investments strand of Finance and banking. A few resources are in Spanish or Portuguese, and some mention the CMT exam, so candidates can find material that matches their own preparation.

Ready to begin? Pick one deck, work through it once, and then take a quiz to see which topic to study next.